Billionaire investor Vinod Khosla has backed Elon Musk‘s bold prediction that money may no longer matter by 2036, but he believes there is one major condition attached to it.
Khosla said Musk’s prediction will only come true if politics allows the huge wealth and abundance created by artificial intelligence to reach people.
The comment has sparked fresh interest because Khosla and Musk have often disagreed publicly on several issues. But this time, the two tech billionaires appear to have a similar view of how AI could change the global economy.
What Elon Musk predicted
Musk made one bold prediction during an interview with The Economist’s editor-in-chief, Zanny Minton Beddoes. Musk argued that as artificial intelligence and robots become more capable, machines could eventually produce more goods and services than people can use.
“Money won’t matter in 2036,” Musk told The Economist.
He explained his view by asking: “If robots and AI are providing more goods and services than any human could consume, what do you need money for in that case?”
Musk also addressed what would happen to people whose jobs are taken over by AI and robots. His answer was simple: “Universal high income.”
Unlike many economists who worry about rising prices as governments spend more to support people, Musk also predicted that AI-driven production could lead to deflation. “I’ll make a prediction, which is that deflation will be the issue, not inflation.”
His argument is that if machines can produce huge amounts of goods at very low costs, prices could fall sharply. He also suggested that governments could simply issue money to people once goods and services become abundant enough.
Khosla agrees, but says politics will decide the outcome
Khosla has made similar predictions about the impact of AI on jobs and the economy in the past. However, while broadly agreeing with Musk’s 2036 prediction, Khosla added an important condition.
He said Musk’s claim that “money won’t matter” will hold “only if the politics permits this great abundance.”
He referenced his own 2024 essay “AI: Dystopia or Utopia?” to illustrate his point. He argues that technology alone cannot ensure everyone benefits from the wealth generated by AI.
I'd modify @elonmusk prediction that by 2036 "Money won’t matter in 2036," as Musk said to The Economist by adding "only if the politics permits this great abundance" as explained at https://t.co/dxJMT5xmJq.
— Vinod Khosla (@vkhosla) July 26, 2026
Reporting: https://t.co/50p6HhPP1j
He previously wrote about the potential for AI to automate approximately 80% of jobs across various sectors within the next 25 years. If this occurs, the demand for human labor could decline significantly.
He believes this shift could lead to a highly deflationary economy, allowing people to enjoy a higher standard of living even if their earnings are lower than current wages. However, Khosla has consistently cautioned that this abundance will not automatically benefit everyone.
He has argued that governments may need to step in with policies such as universal basic income and other forms of redistribution. Without such measures, he believes AI could make the gap between the rich and poor even wider.
In his essay, Khosla warned that an AI-powered future “will likely lead to increasing income disparity and abundance at the same time” unless societies actively decide to distribute the benefits more widely.
Musk says governments could give people money
Musk was questioned about how the world could move from today’s economy to a future where AI replaces a large number of jobs, with concerns raised about job losses, growing wealth inequality and political instability. He was also asked whether governments would need to introduce “massive redistribution”, increase taxes on capital or bring in a universal basic income to support people who lose their jobs to AI.
Musk suggested that governments could directly provide financial support to people. “I think the Treasury should just simply issue people checks.”
The interviewer then warned that printing large amounts of money could lead to inflation.
Musk disagreed, saying the traditional rules of economics may not work in the same way in an economy dominated by AI and robotics. “Inflation is simply the ratio of money to goods and services. If the output of goods and services increases dramatically… you can create money in the database.”
The debate over Musk’s AI vision ultimately raises questions about how society will manage the huge changes ahead. While AI could create more wealth, cheaper goods and transform the way people work, it could also lead to job losses, inequality and political unrest.
Musk himself admitted that he swings between excitement and fear over AI, saying, “Honestly, if you ask me on any given day, even intraday, I’ve gone from exhilaration to terror regarding AI.”
He believes AI could eventually become more intelligent than all humans combined and says the focus should now be on making its development safe rather than trying to stop it.