Cathie Wood: AI Cost Collapse Could Spark a Productivity Revolution, Economy May See "Benign Deflation"

PANews reported on October 6 that ARK Invest founder Cathie Wood posted on X, stating that AI inference costs are currently falling 99.99% per year at constant performance levels, while OpenAI's annualized revenue run rate has grown from $20 billion to $70 billion, indicating that falling costs are driving rapid demand growth.

Cathie Wood believes that cost declines brought by innovative platforms such as AI will gradually transmit to the broader economy, boosting productivity and corporate profitability, and pushing inflation below levels most investors expect—so-called "benign deflation." ARK Invest expects real GDP growth could reach the high single digits, although this forecast seems "crazy" to most people; in a stronger real growth environment, interest rates could actually rise.