OpenAI investor Vinod Khosla forecasts AI-induced economic deflation over the next 25 years

Billionaire investor Vinod Khosla, a key supporter of OpenAI, is foreseeing a monumental shift in the global economy driven by artificial intelligence (AI). With his recent $50 million investment in OpenAI, Khosla aims to contribute to shaping the future of AI, believing that it will not only reshape industries but also fundamentally redefine how we perceive economic growth in the next 25 years.

AI's deflationary impact:

Khosla shared his insights on AI's economic impact, projecting a significant deflationary effect over the next 25 years. In a post on X, he stated, "AI should be hugely deflationary over twenty-five years," suggesting a future where AI transforms the economic landscape, challenging established metrics like GDP and creating an abundance of goods and services.
Khosla's outlook implies a scarcity of capital in the AI-driven era, prompting a reevaluation of traditional economic metrics. As AI takes center stage, Khosla suggests that current measures like GDP may become less relevant, while goods and services become more abundant. This shift raises essential questions about the appropriate metrics for gauging economic health in this evolving paradigm.

ALSO READ: Burman family to acquire controlling stake in Religare Enterprises

Khosla's visionary investment in OpenAI:

Vinod Khosla's visionary stance on AI is not just theoretical; he backed his beliefs with a substantial $50 million investment in OpenAI in 2019. This investment, the largest in OpenAI's history, underscores Khosla's commitment to actively shape a future where AI plays a pivotal role in economic dynamics.
At the Fortune Brainstorm AI conference, Khosla challenged common fears surrounding AI, emphasizing that the more significant risk lies with geopolitical challenges, particularly from China, rather than the exaggerated narrative of AI turning hostile. This perspective aligns with other tech leaders, such as Elon Musk, envisioning AI-driven economic possibilities that could lead to a world free from poverty.

ALSO READ: Vedanta faces Moody's downgrade in it's shares, stock hits 52-week low