The VC sees a radically deflationary AI future and suggests bold government intervention to soften the social and economic fallout.
A Bold Proposal for an AI-Transformed Economy
Vinod Khosla, founder of Khosla Ventures, delivered a provocative vision for how the U.S. might respond to the sweeping changes brought on by artificial general intelligence (AGI).
“Take 10% of every public company and put it in a national pool for the people,” Khosla suggested. “That’s really interesting.”
Inspired by a recent decision under President Donald Trump for the government to acquire a 10% stake in Intel, Khosla questioned whether a similar strategy could be applied across all public corporations—redistributing corporate ownership to soften the societal shock of mass automation.
Sharing the Gains of AGI
While universal basic income (UBI) has been floated in AI circles—including by OpenAI’s Sam Altman—Khosla’s idea stands out for its explicit endorsement of government equity ownership in private industry.
He acknowledged the idea is controversial, but emphasized its urgency:
- AGI will exponentially increase productivity, leading to massive economic deflation
- Without intervention, wealth concentration could become extreme
- A national equity pool could democratize access to AI-driven prosperity
“Sharing the wealth of AI is a really, really big need to level the benefits to everybody,” Khosla said.
The Future: Deflation, Job Displacement, and New Norms
Khosla believes we’re headed toward a “hugely deflationary economy by 2035”, where the cost of most goods and services approaches zero thanks to AI automation.
This future will displace entire professions, reshaping what work means:
- Jobs in accounting, auditing, medicine, chip design, and even entertainment will be redefined or replaced
- Physical labor like tire assembly or farming may become obsolete for humans
“That’s servitude to survival,” Khosla said, challenging the notion that all work is inherently dignified if it exists solely to sustain life.
A Call to Founders: Build AI for Every Profession
While painting a disruptive picture, Khosla also sees tremendous opportunity:
- He encourages founders to build AI systems for every profession
- Each displaced job opens up space for new applications, services, and business models
- Startups can lead the charge in redefining human value and contribution in an AI-dominant world
Khosla’s core message: society must prepare—not resist—the structural changes AGI will bring.
Extreme Measures for an Extreme Transition
By proposing partial national ownership of corporate wealth, Khosla joins a growing chorus of thinkers advocating radical ideas to match the scale of disruption AI may cause.
While critics may call it socialist or interventionist, Khosla frames it as a temporary mechanism—a bridge to a world where technological abundance allows for greater human freedom.
“We won’t need to do it in 15 years,” he noted. “But we do have to take care of those people.”
Vinod Khosla suggests the U.S. take a 10% stake in all public companies to distribute AI-generated wealth more equitably. As AGI reshapes work and drives deflation, he argues bold measures are needed to sustain social balance—and offers a call to startups to build AI for every profession.
