AI could double US GDP growth to 4% next year, says Elon Musk

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Washington: Tesla and SpaceX CEO Elon Musk said artificial intelligence (AI) could potentially double the growth rate of the US economy to around 4 per cent next year. This statement comes amid blistering advances in the technology and increased investment in it.

“My guess is that AI roughly doubles US GDP growth next year from ~2% to ~4%,” Musk said on X. “Maybe even more.”

Musk said productivity increases led by AI could add dramatically to economic output. He noted that the buildout of AI infrastructure also will create huge capital needs as firms pour money into data centres, computing and other infrastructure.

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As the investment in AI scales up, there has been some concern over the costs of finance and whether companies will earn enough revenue and returns from investments.

Musk’s forecast is more positive than the official economic projections, underscoring the uncertain economic implications of AI.

The comments come as companies ramp up their spending on AI in a bid to build out computing capacity and to develop more sophisticated algorithms.

Also Read: India’s GDP has doubled to USD 4.2 trn over last ten years: IMF

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