Elon Musk forecasts 4% US growth from AI by 2027
Business
Elon Musk thinks AI could push US economic growth to 4% by 2027, almost double what's expected without it.
He shared this bold prediction on X, but it's a lot higher than the Federal Reserve's own estimate of around 2.4% for the same year.
AI profitability and funding hurdles
Musk's optimism comes as big tech companies pour money into building powerful AI systems, but there are real challenges.
Rising costs, tricky profits, and short-lived models mean making money from AI isn't easy.
Plus, with the Fed recently hiking interest rates to fight inflation, borrowing for these pricey projects just got tougher, so while AI has huge potential, there are still plenty of hurdles before it can supercharge the economy.