Cathie Wood: AI reasoning costs dropped by 99.99% year-on-year or may start an era of "benign deflation"

Odaily Planet Daily News ARK Invest founder Cathie Wood said that the cost reductions brought about by innovative platforms such as AI will gradually be transmitted to the wider economy, increasing productivity and corporate profitability, and driving the inflation rate to a level lower than most investors expect, which is the so-called "benign deflation."

Cathie Wood believes that the current cost of AI inference has dropped by 99.99% annually while maintaining the same performance level. At the same time, OpenAI's annualized revenue run rate has increased from US$20 billion to US$70 billion, indicating that cost reductions are driving rapid growth in demand. ARK Invest predicts that real GDP growth may reach high single digits, although this prediction is considered "crazy" by most people; in a stronger real growth environment, interest rates may rise instead.