Marc Andreessen Predicts AI-Driven Hyper-Deflation Era

A surge in AI-driven productivity could lead to hyper-deflation, causing items once priced at $100 to drop to a penny, billionaire investor Marc Andreessen recently stated. The co-founder of Andreessen Horowitz described a future where 'the price of business services will collapse, and things that today cost a lot of money will suddenly become cheap or free.' He refuted the notion that AI's success would devastate employment, calling it a 'great economic fallacy' to assume hyper-productivity must result in poverty. Andreessen suggested that the real outcome would be massive oversupply and a collapse in prices. He emphasized that AI will amplify human capability rather than erase human roles, stating that AI makes each individual a 'super-PhD in every topic.' He also countered fears of rapid job losses, noting that changes won't occur as quickly as many fear. Sectors like medicine and law are expected to remain less disrupted in the near term due to regulatory and licensing constraints.