Elon Musk proposed the U.S. Treasury send money directly to people in response to Vice President J.D. Vance's concerns about AI-driven wealth disparity. Vance appeared on the 'The Diary of a CEO' podcast on June 18, where he discussed President Donald Trump's openness to the White House owning stakes in AI companies. Musk responded via X, arguing the AI and robotics age will be highly productive, leading to deflation rather than inflation, and suggested direct payments to citizens instead of government equity stakes. The debate follows SpaceX's public debut on June 12, which revealed the company holds 18,712 Bitcoin as of March 31.
Vance Discusses Trump's AI Equity Proposal on Podcast
Vance appeared on British entrepreneur Steven Bartlett's "The Diary of a CEO" podcast on June 18. When Bartlett said AI entrepreneurs like Elon Musk and Sam Altman hold a "very dystopian" view of the technology, Vance responded they have an incentive to be dystopian because it's a form of viral marketing for their products.
The vice president expressed concern that if AI companies make trillions of dollars over the next decades, he is skeptical of them redistributing the wealth among their workers. "You have to give everybody a stake in the society… You've got to give the workers a seat at the table," Vance said. He said he does not know how wealth redistribution would work out in the AI age.
One of the proposals President Donald Trump is open to is the White House owning stakes in some AI companies and building a kind of sovereign wealth fund, Vance revealed. If these companies become more valuable, the U.S. government profits which could be used for the benefit of average Americans, he added.
Musk Proposes Treasury Direct Payments via X Post
Musk responded to Vance's concerns in an X post. He said the age of AI and robots will be very productive, and the goods and services will increase more than the supply of money. In such a scenario, there won't be inflation, he added. Musk predicted the world would instead be battling deflation.
His argument is that the AI age will be extremely productive, in which there will be such an abundance of goods and services that prices will decline, leading to deflation. The trillionaire proposed that instead of the government owning stakes in AI companies, the Treasury should send money directly to the people.
Under Vance's proposal, the government profits from AI valuation potentially rising, which benefits people indirectly through different programs. Under Musk's proposal, AI companies can remain private and the government can tax them and then send money directly to people for them to buy goods and services.
Musk once agreed that the global AI race will drive massive spending and potential currency debasement. "Fake" fiat currency can be printed but Bitcoin, based on energy, cannot be faked, Musk argued.
SpaceX Discloses Bitcoin Holdings in IPO Filing
SpaceX made its public debut on June 12. The company disclosed in its filing that it holds 18,712 Bitcoin on its balance sheet as of March 31. The crypto community has been aware of SpaceX's Bitcoin holdings for years as it closely follows Musk's comments on digital assets. Musk has often praised cryptocurrencies like Bitcoin and Dogecoin.
Grayscale Highlights Decentralized AI Demand
The U.S. government suspended access to Anthropic's new Fable/Mythos class of models by foreign nationals due to national security concerns. Grayscale head of research Zach Pandl argued the centralized control of AI technology "drives home the need for decentralized alternatives." Grayscale said it expects demand for decentralized AI such as Bittensor (TAO) to continue to rise as investors seek alternatives.
FAQ
What did Elon Musk propose to the U.S. Treasury?
Musk proposed the U.S. Treasury send money directly to people instead of the government owning stakes in AI companies. He argued the AI age will be highly productive, leading to deflation, and suggested direct payments to citizens.
What did J.D. Vance say about Trump's AI policy on June 18?
Vance appeared on "The Diary of a CEO" podcast on June 18 and revealed President Donald Trump is open to the White House owning stakes in some AI companies and building a sovereign wealth fund. He expressed concern about wealth redistribution in the AI age.
How much Bitcoin does SpaceX hold?
SpaceX disclosed in its filing that it holds 18,712 Bitcoin on its balance sheet as of March 31. The company made its public debut on June 12.
