Cathie Wood: AI inference costs may drop by 99.99% this year, potentially ushering in an era of "benign deflation."
ARK Invest founder Cathie Wood stated that the cost reductions brought about by innovative platforms such as AI will gradually transmit to broader economic sectors, enhancing productivity and corporate profitability, and driving inflation rates down to levels below most investors' expectations, a phenomenon referred to as "benign deflation."Cathie Wood believes that the current AI inference costs are decreasing by 99.99% annually while maintaining performance levels. Meanwhile, OpenAI's annual revenue run rate has increased from $20 billion to $70 billion, indicating that the decline in costs is driving rapid growth in demand.ARK Invest expects that real GDP growth rates could reach high single digits, although this prediction seems "crazy" to most people; in a stronger real growth environment, interest rates may actually rise.
