Apollo economist warns AI boom may be unsustainable as stocks tumble

Torsten Slok points to slowing token spending, flat productivity and widening credit spreads as Wall Street pulls back from AI Torsten Slok, chief economist at Apollo Global Management, spent the past week issuing warnings about the AI boom. His central claim is that the numbers powering the AI trade are starting to wobble. On Tuesday, Slok flagged a recent slowdown in the growth of token spending. In AI, tokens are the small chunks of text that models process, and customers typically pay by the token. Slok described the demand curve for compute as flat and highly sensitive to price changes. A price-sensitive buyer is one who walks away the moment the bill goes up.

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