Elon Musk says AI will create so much wealth that ‘everyone can have a penthouse if they want’
As concerns grow over how artificial intelligence could reshape the job market, one of the world's richest tech leaders is offering a bold and controversial solution. Billionaire Elon Musk said in a post (1) on X, "Universal HIGH INCOME via checks issued by the Federal government is the best way to deal with unemployment caused by AI." In response to one critic, Musk followed the claim up with another one: "AI/Robotics will mean everyone can have a penthouse if they want." In the same breath, the tech mogul reasoned that output will be "orders of magnitude" higher, implying scarcity would therefore be a non-issue. (2) Musk's original post, 68 million views strong, is well-timed. It lands amidst concerns about AI replacing peoples' jobs alongside headlines that suggest 20% of jobs are at risk to automation. Even the U.S. Bureau of Labour Statistics estimates that use of generative AI (GenAI) will decrease demand for many jobs, including transcriptionists (-4.7%) and customer service representatives (-5%), in the decade ending 2033. (3) But as you might have guessed, it's more complicated than that. The Bureau also estimates that use of GenAI will increase demand for some professions, including software engineers (17.9%) who must maintain the infrastructure upon which AI runs. (4) Experts, including economists and AI builders, have much to say on the topic of AI and the future of wealth. Opinions touch upon how much wealth AI and robotics will actually generate, the plausibility of universal basic income, and the future of jobs. Some experts have made similar claims as Elon Musk, suggesting that AI or robotics will create massive abundance in the not-so-distant future. On AI and robotics, XPRIZE founder Peter Diamandis has said, "I believe in the next 30 years… we will be able to meet the basic needs of every man, woman and child." The Age of Abundance author also expressed confidence in UBI as a mechanism to meet these needs. (5) AI scientist Ray Kurzweil, credited for predicting AI's meteoric rise, has said AI will upset the job market, and UBI will help cushion the impact. In an interview with The Guardian, he predicts "inadequate" UBI by the early 2030s. He says it will become more adequate over time. (6) Both Diamandis and Kurzweil seem to believe AI/robotics will lead to a world in which the price of most things toward zero. Kurzweil analogizes it to the mobile phone. The rich got the early, crappy versions. By the time it got good, about "three-quarters of the world" had one. (7) Read More: This $1B private real estate fund is now accessible to non-millionaires. Start investing with just $10 Some economists believe AI/robots will create massive wealth, but they disagree with Musk on where that wealth will end up. Stanford economist Philip Trammell and Dwarkesh Patel argue that supersmart AI paired with autonomous robots could easily concentrate wealth. On Substack, they say, "...once AI renders capital a true substitute for labor, approximately everything will eventually belong to those who are wealthiest when the transition occurs, or their heirs." The duo floats a universal, progressive income tax as one solution to the issue of massive inequality. (8) And they're far from the only experts speaking on the subject. Economist Alex Imas, also concerned about what happens when AI creates explosive wealth that flows mostly to AI/robotics companies. On Substack, he advocates for a sovereign wealth fund that pays dividends to citizens directly. (9) None of these experts suggest that average Americans will automatically see massive income gains. Some argue the benefits could skew toward those who already own capital. Some experts disagree with Elon Musk's claims on all counts. Sanjeev Sanyal, economist and member of India's Economic Advisory Council to the Prime Minister, used X.com to directly respond to Elon's claims, calling them "so wrong" and suggesting universal high income would bankrupt any country that attempted it. (10) Daron Acemoglu, Economics professor at M.I.T. and Nobel Laureate, estimates AI will only boost the economy 1% by 2035 (11), far from an abundance explosion. In his book Power and Progress, Acemoglu says even when technology really does create massive wealth, it doesn't automatically lead to prosperity — penthouse money — for most people. (12) This writer speculates Acemoglu would include Elon Musk among the elites who typically reap outsized benefits from new, wealth-creating technologies. The real takeaway isn't that Elon Musk, or one of his critics, knows how advances in AI and robotics will affect your wallet. It's that experts disagree on how AI will impact your wallet. For now, the future of AI-driven wealth remains uncertain — which means workers and investors alike may need to plan for a range of outcomes, not just the most optimistic one. Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now. We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines. X (1),(2),(10); U.S. Bureau of Labor Statistics (3),(4); Diamandis (5); The Guardian (6),(7); Substack (8),(9); MIT (11),(12) This article originally appeared on Moneywise.com under the title: Elon Musk says AI will create so much wealth that ‘everyone can have a penthouse if they want’ This article provides information only and should not be construed as advice. 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