AI Industry Moves to Cost‑Effective Models Amid Elon Musk’s Forecast of Money’s Decline

According to XTB’s market analysis, the artificial‑intelligence sector is transitioning from expensive frontier models to cheaper “good‑enough” solutions that deliver acceptable performance at lower cost. The report notes that the world’s largest tech firms could invest roughly $6 trillion in AI infrastructure between 2026 and 2031, yet many developers still lack a clear path to profitable returns.

Elon Musk, speaking with The Economist, warned that by 2036 the productivity gains from AI and robotics could create such abundant supplies that money would lose much of its current economic function. He highlighted the risk of persistent deflation, job displacement from automation, and suggested policy measures such as higher capital taxes, wealth redistribution, or universal basic income to mitigate societal impacts.