The AI boom is turning traditional economics on its head as tech giants boost spending despite high interest rates

• Mega-cap tech giants have continued their record capex spending on AI despite high interest rates.
• Typically, higher rates slow capex spending, but the AI opportunities seem to be too enticing.
• "This is another reason why the monetary policy transmission mechanism is much weaker than usual," Apollo's Torsten Sløk said.

The ongoing boom in artificial intelligence has flipped traditional economic principles on its head.

That's according to Apollo chief economist Torsten Sløk, who highlighted in a Wednesday note the continued surge in capex spending by mega-cap tech giants despite high interest rates.