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Apollo’s president warns the AI spending boom may not pay off for investors

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Tech companies are pouring trillions into artificial intelligence, but investors shouldn’t assume the bets will pay off, Jim Zelter, president of Apollo Global Management, said.

“We’ve seen this many times in our last 30 years, whether it’s cell phones or other technology uses. There’s no doubt they’re going to have a massive utility,” Zelter said on Goldman Sachs’ “Exchanges” podcast published on Thursday.

“But is the economic owner going to harvest the right returns for that investment?” he asked.

The buildout is already reshaping the industry’s economics. Zelter estimated that US data centers alone could require $5 trillion to $6 trillion over the next five years.

“There’s a massive capex cycle going on that’s turning an asset-light business into asset-heavy,” he said.

And a key question, he added, is what returns shareholders will ultimately see.

“Just because companies need capital, doesn’t mean they’re all great investments,” Zelter said.

For Apollo, the surge in spending represents a financing opportunity — but one that requires discipline.

Zelter said investors shouldn’t treat equity-like risk as if it were safe, fixed-income exposure. He emphasized that higher-risk investments need to be compensated accordingly, while lenders should ensure they have strong downside protections.

Zelter’s caution comes as debate grows over whether the AI boom is veering into hype.

Other big-name investors have also raised concerns about investor exuberance in AI.

Howard Marks, the cofounder of Oaktree Capital Management, said in December that too many investors have a “lottery-ticket mentality” when it comes to AI.

In February, veteran trader and economist Steve Hanke told Business Insider that AI is “overhyped and potentially dangerous.”

A recent KPMG US survey found that three-quarters of large-company CEOs said generative AI may have been overhyped over the past year, even as many said its longer-term disruptive potential remains underappreciated.

But they’re still spending: Nearly 80% of the CEOs told KPMG they plan to allocate at least 5% of capital to AI this year.




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Oracle to investors: Don’t worry about data center spending, company is ‘very, very good’ at cost-cutting

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Oracle has two magic words for investors concerned with the company’s aggressive data center spending: fast and cheap.

Shares of the cloud giant rose as much as 10% on Tuesday after it surpassed investor expectations for the third quarter and raised revenue guidance to $67 billion for fiscal 2026.

Still, Oracle faced some questions about its AI data center buildout and how it plans to justify the billions of dollars it burns along the way. In February, Oracle announced a $50 billion debt raise to help fund its AI ambitions. In the last year, the company has announced major data center projects in Texas, New Mexico, and Michigan.

On Oracle’s third-quarter earnings call Tuesday, Bernstein analyst Mark Moerdler asked, “How comfortable are you with the values you’re creating from the AI data center business itself?”

Oracle co-CEO Clay Magouyrk reassured Moerdler that the company is focused on minimizing the cost of its data center buildout to maximize future profitability.

“We continue to get better and better at running these data centers, delivering them more cheaply, optimizing the amount of cost for networking and hardware spend, as well as power,” said Magouyrk.

He added that Oracle is focused on accelerating the time its buildings spend under construction.

“We’re very good at it,” he said.

“We’re very, very good at reducing those costs during that time period.”

He did not give any other details on how exactly Oracle manages its data center budget.

In 2022, Oracle undertook significant cost-cutting measures, laying off thousands of people in the wake of its $28 billion acquisition of medical records giant Cerner.

In January, Business Insider reported that Oracle was struggling to find financing for Stargate, its $500 billion data center initiative with OpenAI.

Lenders and investors told Business Insider they were growing weary of the project’s lofty ambitions as it races to keep up with the rest of Big Tech amid the AI race.

Amazon, Microsoft, Google, and Meta are on track to spend $600 billion on data centers and AI infrastructure in 2026 alone.




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I moved to Coral Gables for my dogs. I’m spending almost $2,000 more in rent, but we get to walk everywhere.

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I’ve learned that there are three types of dog owners in the world: those who have dogs but treat them like pets with basic needs, those who absolutely love their dogs and spoil them, and those who treat their dogs like children.

I’m proudly in the third category.

I grocery shop for my dogs so I can home-cook their meals. I buy them Christmas presents, post photos of them on their Instagram account to more than 12,000 followers (whom I reply to on their behalf), take them to photoshoots and brand partnerships, and got them European passports so I can take them on vacation with me.

Not only that, but I play Bluey, SpongeBob SquarePants, and meditation music for them while I’m busy working to keep them entertained. I let them lick my vanilla ice-cream cone, and they sleep in my bed, cuddled under the covers at night.

But all of those things directly align with my lifestyle and the tasks I already do regularly; however, six months ago, I did the most drastic thing in my life for their benefit. I moved zip codes, prioritizing their well-being.

I chose a neighborhood where I could walk with them everywhere

Last year, while deciding where to move, I focused on finding a neighborhood where I could walk almost everywhere and bring them with me, while feeling safe walking at any hour of the day or night. After researching the best neighborhoods in the city for dog parents, all signs pointed to Coral Gables — one of the most expensive and also most dog-friendly areas in Miami.


French bulldogs on bed

The author is paying almost $2,000 more in rent for her dogs to have a better lifestyle.

Courtesy of the author



Moving to Coral Gables from Doral meant switching from an apartment with a $2,500 monthly rent to one with a $4,700 a month rent. While that is a drastic shift in rent pricing I’m choosing to make, given my current priorities and the lifestyle I want my dogs to have, it makes sense. People always say, “You’re paying for the location,” and quite frankly, that’s never felt more true to me.

Many of the residential buildings in Coral Gables allow pets, which takes the stress off people who need to move but can’t find dog-friendly places. Since the dog culture is so pronounced in this part of Miami, many buildings make it acceptable to have more than one dog.

I moved from Europe to Florida with my dogs

I lived in Europe for nearly five years — three of them in London, then the South of France, and finally Rome — before moving back to Florida in 2022. While in London, I became a dog mom after someone gifted me Bentley for Christmas.


Woman in Rome with dogs

The author moved from Europe back to Miami with her two dogs.

Courtesy of the author



During my time in Europe, I never owned a car because public transportation made getting around effortless. When I moved to Miami, that was what I missed most. Since moving back, I’ve been eager for something that comes as close as possible to the life I lived in Europe, with the dog-friendly energy that comes with it.

My French Bulldogs have many special needs. Being brachycephalic, they can only walk at certain temperatures, which means our walks have to happen during specific hours of the day so it’s not too hot. They also need to maintain a healthy weight, since excess weight can affect their backs and ligaments. Frenchies are prone to skin allergies as well, which I’ve never seen manifest in mine — and I credit that to their fully home-cooked diet.


Dog in the alps

The author wanted a lifestyle that allowed her to take her dogs with her.

Courtesy of the author



While we often get compliments at the vet for being among “the healthiest Frenchies” they’ve ever seen, that level of care comes with real responsibility and sacrifice. Owning a French Bulldog means shaping your lifestyle around its health and wellness needs. I never planned to have this breed, but life had other plans, and I ended up with two that I love with my whole heart.

They’re my buddies, my besties, and I’m grateful I found a place in Miami that makes me miss Europe a little less — while giving me more time to simply be with them and involve them in my daily activities.




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After spending 150 days on Princess Cruises, I earned Elite status. These 4 perks have completely elevated my experience.

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Even after working on cruise ships for years, I love this form of travel. And although I’ve sailed with many cruise lines over the years, Princess stands out for its beautiful ships and interesting itineraries.

Just like airlines, most major cruise lines offer loyalty programs, and on every sailing, guests earn credit toward their status.

Although chasing status is never my goal, I gained the highest level — known as Elite — on Princess Cruises’ Captain’s Circle program, after spending 150 days at sea over three years.

Here are five Elite status perks that have completely elevated my sailing experience.

Priority access to water shuttles means more time spent at our destinations


A person holds a priority water shuttle ticket for Elite guests.

I love not having to wait for a water shuttle.

Tammy Barr



Some ports have small or shallow harbors that require cruise ships to anchor offshore and use smaller boats (known as tenders or water shuttles) to take guests ashore.

It’s often a confusing and irking part of the cruising experience because it takes time to load and maneuver these small boats to the pier, which can result in guests waiting hours to go ashore.

Luckily, as an Elite member, I now receive priority access to these water shuttles. My last cruise had three ports where a water shuttle was required to go ashore, and this benefit alone saved me from waiting and worrying about how long it would take to leave the ship.

In the past, I’ve woken up very early and waited in long lines for water shuttle tickets. I’ve also had my independent port plans ruined because of slow tender operations.

With Elite status, though, I’m able to take my entire family on the first tender of the day without having to set an early alarm.

I also have access to complimentary laundry services


Slips of paper and a paper bag on a bed.

As an Elite member, I can have my clothes washed and folded for free.

Tammy Barr



On Princess ships, passengers can pay to access self-service laundromats, as well as full-service laundry and dry cleaning. As an Elite passenger, however, I can send out my dirty laundry and have it washed and folded for free.

This means I no longer have to spend time doing laundry on vacation. Instead, I put my clothes in a bag, and they return clean and folded within a day or two.

I like to use the service for things like socks and underwear, and it’s nice to know I can pack less for long cruises.

Internet access is offered at half price

Although I try my best to disconnect when I’m on vacation, I typically purchase a WiFi package to check in with family members and friends back home.

WiFi is included in some bundled packages, but can also be purchased separately. Luckily, as an Elite member, I receive 50% off all WiFi packages.

There are opportunities for free and discounted food and drinks


An alcoholic beverage and hors d'oeuvres on a table.

I love enjoying free drinks and hors d’oeuvres.

Tammy Barr



One of my favorite parts about being an Elite member is that I get access to discounted food and drinks. For example, certain suites on Princess cruises come with a one-time mini bar, but as an Elite member, this is a perk I get to enjoy on every sailing.

My room comes stocked with 10 alcoholic and 10 non-alcoholic drinks, which include a mix of liquor, beer, soda, and sparkling water. With the price of alcoholic drink packages now up to about $100 per day for each guest, I think this perk provides a good value.

On one formal night each cruise, Elite loyalty members are also invited to the Captain’s Circle party, which includes live music, complimentary drinks, and hors d’oeuvres.

Plus, on formal night, I have the opportunity to order and enjoy delicious hors d’oeuvres while getting ready. I’ve enjoyed small plate options like seared tuna, salmon, and beef — all paired with the mini-bar drinks to create a fun happy hour vibe in my cabin.

I save a lot of money by taking advantage of the various hosted food and drink events on board. In fact, I don’t even purchase a drink package anymore.




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My mother is spending the holidays with me for the first time in years. I’m struggling with the added costs and to-dos.

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I have not spent Christmas with my mother in more than a decade. We have spent our Christmases apart simply because of geography. We’ve been living on opposite sides of the country: a five-hour flight or a 26-hour car ride through unpredictable weather.

So, she’s kept to herself for the holidays, and I’ve become the keeper of Christmas for my immediate family. Even as my sons grew up and moved away, taking on their own roles to make our holidays special, I’m still the list-maker, the “don’t forget” reminder, and the decider in all things.

My four sons, all between 25 and 31 years old, have helped lighten my load over the years, especially as their partners have come onto the scene. Christmas was just starting to take on a new, easier shape.

But this year, my mother lost her husband of nearly 40 years, so she’s coming to visit, and I’m realizing how far I will need to stretch my budget.

I have to be my mother’s Santa this year

At first, I didn’t really think about how my mother’s arrival might change my own role for the holidays. I just thought about my mom, exhausted and heartbroken and unmoored by the loss of the husband she has lived with for more than half her life.

But as she gets ready to fly to me for Christmas, I’m realizing she’s going to need me to be her Santa.

My mom needs a Santa. She has suffered this year in a way I cannot even imagine. She needs soothing; she needs to be reintroduced to a big family Christmas. She needs a stocking filled with fun, thoughtful trinkets. She needs me to make this year extra magical, and honestly, I’m worried I’m not up to the task.

I’m struggling to keep up with everything this Christmas

I’m finding this Christmas overwhelming because everyone in the family needs me for different reasons. My kids need me to bring them together, to cook for them and bake for them, and organize a big rental space for the group of us.


Jennifer McGuire and her four sons

The author and her four sons usually spend Christmas together.

Courtesy of Jennifer McGuire



I’m also paying attention to everyone’s finances, thinking about who is doing well and who is not. I’m thinking about who might need a bit more and how I can give a bit more without playing favorites. How can I afford a bit more?

This is, perhaps, the crux of Christmas this year. The weight of giving to my children and my mother when they all need more. Whether it’s holiday gifts, time, or food, everyone needs me to be their person this year.

Even though everyone in the house will be a grown-up, I’m left feeling, for all intents and purposes, like the only grown-up for the holidays.

I’m struggling financially

I’m worried that I simply cannot afford to be Santa for everyone — not this year. Like many others, I have lost job after job in 2025. I am swimming just below the surface of losing everything, and I can’t seem to come up for air.

I know that no one in my family expects a lot for Christmas, but even a little something to make the day special for each person who so deeply deserves it will be a struggle. There are 10 people in our family, and $100 each means $1,000. We all know that $100 each is next to no budget at all.

And so this year, I’m getting creative. I’m buying secondhand gifts. I’m trying to become a crafty person to create something meaningful for all of my loved ones. I’m wishing I had helpful elves to take on some of my Santa tasks. I’m actively choosing to leave the stress of trying to find work at the door until after the holiday. I’m trying, I’m trying, I’m trying.

I’m focusing on giving my mother support

My mother’s first Christmas as a widow can’t be consumed by my own stress. She needs comfort. She needs family. She needs joy. Luckily, all of that is free.

She needs me to be the grown-up in the house. She needs me to be Santa. They all do, and I refuse to buckle under the weight of it.

Instead, I’m going to choose to feel grateful that I have all of this love in my life.




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Oracle investors have questions about its spending

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Oracle investors have questions about its spending.

The software giant posted quarterly results that fell short of Wall Street’s revenue expectations on Wednesday, and shares slid more than 11% in after-hours trading.

“Capex & financing needs have been the biggest investor question over the last two months, weighing on the stock,” wrote Derrick Wood, an analyst at TD Cowen, ahead of the earnings call.

During the call with investors on Wednesday, Clay Magouyrk, co-CEO of Oracle, reassured analysts that the company’s debt remains in “investment-grade” and that the company is in unique business areas that justify the optimism.

“We’ve been reading a lot of analyst reports, and we’ve read quite a few that show an expectation of upward of a $100 billion for Oracle to go out and kind of complete these build-outs,” said Magouyrk.”And based on what we see right now, we expect we will need less, if not substantially less, money raised than that amount to go and fund this build out.”

Toward the end of the call, an analyst with Guggenheim Securities asked why Oracle is so optimistic that its growth will accelerate when most software service companies are seeing slowing growth, and Magouyrk responded that Oracle is the “only applications company in the world that’s selling complete application suites,” with added AI.

Despite the revenue miss, Oracle still saw 14% year-over-year revenue growth in the quarter ending November 30. Earnings per share also beat estimates at $2.26 versus the expected $1.64. Net income jumped to $6.14 billion, up sharply from $3.15 billion a year earlier.

The results drop as Oracle leans heavily into the AI frenzy, betting big on massive data center expansion to win more business.

In its September earnings report, Oracle stunned Wall Street with a surge in cloud bookings tied to AI workloads, a boom that sent the stock to a record high. But the rally didn’t last. Shares have since tumbled roughly a third as investors grow skittish about the enormous capital required to keep building data centers and whether Oracle’s biggest customer, OpenAI, can actually deliver on the multibillion-dollar cloud commitments it’s making.




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