From https://finance.yahoo.com/technolog...nlimited-ai-demand-for-granted-100000961.html
Title : The era of 'tokenmaxxing' is over — and investors shouldn't take unlimited AI demand for granted
By Hamza Shaban , Oct 2026
... a new blog post by Apollo chief economist Torsten Sløk: don't take AI demand for granted.
Ultimately, the key metric that will define the AI build-out isn't physical capacity or power, Sløk said, but the price users are willing to pay for the compute being built ...
An analysis of declining returns on invested capital for the 5 largest hyperscalers suggests invested capital grows faster than the earnings it generates. That mismatch gets at the heart of the AI bull case and gives investors questions to ask and numbers to watch ...
Companies are willing to pay a high price for compute, he said, if they are able to boost revenues, squeeze out better profit margins, or cut costs. But such results at a meaningful scale aren't showing up yet.
So far, he said, the AI payoff has been slow to materialize. That suggests more companies are reluctant to dedicate resources to pay for AI services. Those returns may actually emerge. But the uncertainty comes at a price.
Poster's Note : See Apollo's article at https://www.apollo.com/wealth/insig...n-spend-shows-compute-demand-is-not-unlimited
Title : The era of 'tokenmaxxing' is over — and investors shouldn't take unlimited AI demand for granted
By Hamza Shaban , Oct 2026
... a new blog post by Apollo chief economist Torsten Sløk: don't take AI demand for granted.
Ultimately, the key metric that will define the AI build-out isn't physical capacity or power, Sløk said, but the price users are willing to pay for the compute being built ...
An analysis of declining returns on invested capital for the 5 largest hyperscalers suggests invested capital grows faster than the earnings it generates. That mismatch gets at the heart of the AI bull case and gives investors questions to ask and numbers to watch ...
Companies are willing to pay a high price for compute, he said, if they are able to boost revenues, squeeze out better profit margins, or cut costs. But such results at a meaningful scale aren't showing up yet.
So far, he said, the AI payoff has been slow to materialize. That suggests more companies are reluctant to dedicate resources to pay for AI services. Those returns may actually emerge. But the uncertainty comes at a price.
Poster's Note : See Apollo's article at https://www.apollo.com/wealth/insig...n-spend-shows-compute-demand-is-not-unlimited
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