OpenAI investor says AI will hugely weaken economy

Down Angle Symbol A symbol in the form of an angle pointing downwards. Vinod Khosla, 68, was an early supporter of OpenAI. In 2019, his VC firm invested $50 million in OpenAI. Patrick T. Fallon/AFP via Getty Images

  • According to Vinod Khosla, AI is expected to have a “hugely deflationary” effect on the economy over a period of 25 years.
  • “Current measures of GDP and the economy will be less relevant,” Khosla wrote in one X contribution.
  • “But goods and services should be in abundance,” he continued.

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

“AI should be hugely deflationary over a 25-year period,” says Khosla wrote on X on Monday.

“Capital is likely to be scarce for a while, current GDP and economic metrics will be less relevant, but goods and services are likely to be in abundance,” he continued. “The crucial question is: What are the right measures and the right questions?”

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

The 68-year-old investor has often spoken about the opportunities and risks of AI. On December 12, Khosla told attendees at Fortune’s Brainstorm AI conference that AI is not the biggest threat to the world.

“The fatal ones focus on the wrong risks. The order of magnitude higher risk to worry about is China, not sentient AI killing us,” Khosla said.

Khosla is not alone in predicting the dramatic economic impact 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 was capable of physical labor.

“This means a future of abundance. A future where there is no poverty, where you can have whatever products and services you want,” 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.

NOW WATCH: Popular Videos from Insider Inc.

Is loading…


Posted

in

by