ARK Invest founder Cathie Wood said falling costs from AI and other innovation platforms could spread across the broader economy, lifting productivity and corporate profitability while pushing inflation below what many investors expect. She described that outcome as “good deflation.” Wood said AI inference costs are currently dropping 99.99% per year with performance unchanged. At the same time, OpenAI’s annualized revenue run rate has risen from $20 billion to $70 billion, which she said shows lower costs are driving rapid demand growth. ARK Invest also expects real GDP growth could reach the high end of the single-digit range, even if that forecast appears “crazy” to many people. In a stronger real growth environment, Wood said, interest rates could rise rather than fall.
ARK Invest founder Cathie Wood said falling costs from AI and other innovation platforms are starting to pass through to the broader economy, raising productivity and improving corporate profitability.
She said that process could push inflation below levels expected by most investors, a dynamic she described as “good deflation.”
Falling AI costs and rising demand
Wood said AI inference costs are currently falling 99.99% per year while performance remains unchanged. At the same time, OpenAI’s annualized revenue run rate has increased from $20 billion to $70 billion, indicating that lower costs are fueling rapid demand growth.
ARK Invest’s outlook
ARK Invest expects real GDP growth could reach the high end of the single-digit range, even though that forecast may look “crazy” to many observers. Wood also said interest rates could move higher in an environment of stronger real growth.
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