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A surge in AI-driven productivity could trigger hyper-deflation, making items once priced at $100 drop to a penny, billionaire investor Marc Andreessen<\/a> said recently.<\/p>\n The Andreessen Horowitz co-founder described a future in which “the price of business services will collapse, and things that today cost a lot of money will all of a sudden all be cheap or free,” he told<\/a> the “Cheeky Pint” podcast earlier this month, arguing that fears of mass impoverishment miss the bigger picture.<\/p>\n Don’t Miss:<\/p>\n Andreessen opened the discussion by rejecting the notion that AI’s success would devastate employment. He said it\u2019s a “great economic fallacy” to assume that hyper-productivity must result in poverty. The real outcome, he suggested, would be massive oversupply and price collapse.<\/p>\n Expanding on that, he said, “Everything that costs $100 will sell for a penny.” He clarified that this scenario assumes extreme gains in output.<\/p>\n “Even if it played out, the result would be hyper-deflation of prices, which is the thing that people miss,” he said. Under those conditions, he argued, business services and other goods would become essentially free or extremely cheap.<\/p>\n Trending: Accredited Investors Can Now Tap Into the $36 Trillion Home Equity Market \u2014 Without Buying a Single Property<\/a><\/p>\n Andreessen claimed AI will amplify human capability rather than erase human roles. “AI just makes every individual a super-PhD in every topic,” he said, adding that people will be capable of producing far more than before.<\/p>\n He also pushed back against alarm over job losses, saying the shifts won’t come as fast as many fear. A portion of American jobs \u2014 those in licensed professions, unions, or civil service \u2014 cannot be displaced easily.<\/p>\n He suggested sectors like medicine and law will remain less disrupted in the near term due to regulatory and licensing constraints. “ChatGPT is in fact a better doctor than your doctor today,” he said, but added that it “can’t literally be your doctor” because of broader responsibilities and limitations.<\/p>\n See Also: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors \u2014 Without the Crowdfunding Middlemen<\/a><\/p>\n