July 22, 2024
Investors

OpenAI Investor Says AI Will Hugely Deflate the Economy


Vinod Khosla, 68, was an early backer of OpenAI. In 2019, his VC firm invested $50 million into OpenAI.
Patrick T. Fallon/AFP via Getty Images

  • Vinod Khosla says AI should have a “hugely deflationary” effect on the economy over 25 years.
  • “Current measures of GDP and the economy will be less relevant,” Khosla wrote in an X post
  • “But goods and services should be in great abundance,” he continued.

Billionaire and early OpenAI backer Vinod Khosla says he expects AI to change the global economy fundamentally.

“AI should be hugely deflationary over twenty-five years,” Khosla wrote on X on Monday.

“Capital should be scarce for a while, current measures of GDP and the economy will be less relevant, but goods and services should be in great abundance,” he continued. “The key question is what are the right measures and the right questions.”

Khosla was one of OpenAI’s early backers. His venture capital firm invested $50 million into the company in 2019, the largest investment ever made in the firm’s 15-year history.

The 68-year-old investor has often expounded on the opportunities and risks that come with AI. On December 12, Khosla told attendees at Fortune’s Brainstorm AI conference that AI wasn’t the world’s great threat.

“The doomers are focusing on the wrong risks. By far, orders of magnitude, higher risk to worry about, is China, not sentient AI killing us off,” Khosla said.

Khosla isn’t alone in forecasting the dramatic economic impacts that AI could bring.

When Elon Musk unveiled Tesla’s AI robot Optimus last year, he predicted that the economy could become “quasi-infinite” if Optimus were capable of manual labor.

“This means a future of abundance. A future where there is no poverty, where you could have whatever you want in terms of products and services,” Musk told the audience.

“It really is a fundamental transformation of civilization as we know it,” he continued.

Representatives for Khosla did not immediately respond to a request for comment from Business Insider sent outside regular business hours.





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