AI Investor Predicts AI to Cause Deflation

Samuel Brainard
By Samuel Brainard 2 Min Read
2 Min Read
In Short
  • Vinod Khosla, an early OpenAI backer, predicts a major economic shift due to AI.
  • Khosla believes AI will lead to an abundance of goods and services, making traditional economic measures less relevant.
  • Similar views are shared by Elon Musk, emphasizing AI's potential to create a future of abundance.

December 26, 2023: Billionaire Vinod Khosla, known for backing early AI initiatives, recently shared his thoughts on a future global economy influenced by artificial intelligence. Khosla, who played a pivotal role in supporting the tech startup OpenAI, believes that AI will fundamentally change our economic landscape.

According to Business Insider, in a statement on Monday, Khosla emphasized, “AI should be hugely deflationary over twenty-five years.” He suggested that traditional economic indicators like GDP might become less relevant as AI creates an abundance of goods and services.

Khosla’s insights are drawn from his experience as an early investor in OpenAI, where his firm injected a massive $50 million in 2019. The 68-year-old investor, speaking at Fortune’s Brainstorm AI conference, also touched on the risks and opportunities of AI.

Khosla noted that real risks are elsewhere, noting geopolitical concerns rather than AI itself. Khosla’s thoughts echo those of other tech visionaries like Elon Musk. When Musk introduced Tesla’s AI robot Optimus, he predicted a future of abundance and no poverty, hinging on AI’s capabilities in manual labor.

Khosla’s representatives did not immediately respond when reached out for comments. The silence leaves some questions unanswered, but the message is clear: AI is poised to reshape the global economy, and soon.



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Sam Brainard is a writer first and an experienced AI enthusiast second, demanding to understand the 'how' and 'why' questions that drive us to a deeper comprehension of the good, the bad, and the ugly the AI has to offer. Using varying sentence structure and everyday vocabulary, Sam strives make the power of AI more digestible and accessible to the average viewer, yielding power and knowledge to any individuals who indulge. Prompt engineering, human communication, ethical questions relating to machine learning, and the effect such powerful tools have on the corporate world are central to Sam's interests.
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