Andreessen: AI will collapse consumer prices, acting as a massive universal raise
Marc Andreessen · Marc Andreessen: The real AI boom hasn’t even started yet · Jan 29, 2026 · at 27:58
Marc Andreessen explains his macroeconomic thesis on how AI-driven deflation creates broad consumer wealth.
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“The consequence of massive productivity growth, what that literally means mechanically is more output requiring less input, right? So you get more economic output for less input, right? So you're substituting in AI for human workers or whatever, and as a consequence, you get like this massive boom in output with much lower input costs. The result of that is you get gluts of goods and services in all those effective sectors. The result of those gluts is you get collapsing prices, right? The collapsing prices mean that the thing today that costs you a hundred dollars now costs you 10 dollars and now costs you one dollar. That's the equivalent of giving everybody a giant raise, right? Because now they have all this additional spending power.”
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