AI to cause massive economic deflation in next 25 yrs, predicts OpenAI investor - Hindustan Times
close_game
close_game

AI to cause massive economic deflation in next 25 years, predicts OpenAI investor Vinod Khosla

Dec 26, 2023 08:47 PM IST

Khosla's $50 million investment in OpenAI reflects his commitment to shaping the future of AI in the economy.

Billionaire investor Vinod Khosla, an early supporter of OpenAI, predicts a seismic shift in the global economy. His recent insights suggest that AI will not only reshape industries but fundamentally alter the way we measure and perceive economic growth over the next 25 years.

Vinod Khosla, founder and partner of Khosla Ventures, during the Fortune Brainstorm AI conference in San Francisco, California, US, on Tuesday, Dec. 12, 2023. The conference gathers leaders in machine learning and artificial intelligence to assess the industry and examine new business cases for AI.(Bloomberg)
Vinod Khosla, founder and partner of Khosla Ventures, during the Fortune Brainstorm AI conference in San Francisco, California, US, on Tuesday, Dec. 12, 2023. The conference gathers leaders in machine learning and artificial intelligence to assess the industry and examine new business cases for AI.(Bloomberg)

AI and economic deflation:

Vinod Khosla, a pivotal figure in OpenAI's early success, shared his outlook on AI's economic impact in a recent post on X. Khosla foresees a substantial deflationary effect over the next quarter-century, asserting, "AI should be hugely deflationary over twenty-five years." This prediction hints at a future where capital becomes a precious commodity, challenging existing metrics like GDP while ushering in a surplus of goods and services.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

Capital scarcity and changing economic metrics:

Khosla's forecast implies a scarcity of capital in the AI-driven landscape. As AI takes centre stage, traditional measures of economic health, such as GDP, might lose their relevance. According to Khosla, "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." This shift prompts a crucial question: What are the right metrics to gauge and the pertinent questions to ask in this new economic paradigm?

Khosla's involvement with OpenAI

Not just a visionary, Vinod Khosla backed his beliefs with action. His venture capital firm injected a staggering $50 million into OpenAI in 2019, marking the most substantial investment in the organization's 15-year history. Khosla emphasizes, "The key question is what are the right measures and the right questions." This financial support underscores Khosla's commitment to shaping a future where AI plays a pivotal role in economic dynamics.

Also Read | Infosys mega AI deal loss affects stock, shares dip nearly 3%

Debunking AI threats

At Fortune's Brainstorm AI conference on December 12, Khosla dispelled common fears surrounding AI. Contrary to the prevailing narrative of sentient AI as a potential existential threat, Khosla pointed to a more pressing concern: China. He emphasized that the risks posed by China outweigh those associated with AI evolving into a malevolent force. In Khosla's words, “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.”

Vinod Khosla's sentiments align with other tech luminaries like Elon Musk, who, when introducing Tesla's AI robot Optimus, envisioned an economically abundant future. Musk's perspective suggests that if AI, embodied by Optimus, could undertake manual labour, it could usher in an era of "quasi-infinite" economic possibilities. This, according to Musk, translates into a world free from poverty, where desires for products and services can be met abundantly.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Sunday, April 21, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On