Raoul Pal: The Journey Man The Last Economy: Predicting the AI-Driven World
24 snips
Oct 30, 2025 
Emad Mostaque, co-founder of Stability AI and author of 'The Last Economy,' discusses the revolutionary impact of AI on economics. He introduces the concept of an economic singularity, which may lead to a profound deflationary shock and a shift from scarcity to abundance. Emad explains how generative AI can reshape traditional economic models by lowering cognitive labor value and emphasizes the importance of adapting swiftly. The conversation touches on the future of digital assets, the role of personal AIs, and the need for innovative monetary systems.
AI Snips
Chapters
Books
Transcript
Episode notes
Economics As Loss-Minimizing Models
- Emad frames economics as loss-minimizing generative models where agents reduce the gap between internal models and external reality.
- This single axiom lets him derive classical economic concepts and reinterpret capital as material, intelligence, network, and diversity.
Cognitive Labor Approaches Zero Cost
- AI agents have moved from synchronous prompting to hours-long autonomous work, collapsing cognitive labor costs toward near-zero.
- Emad predicts most remote cognitive jobs can be replaced within three years as token costs fall dramatically.
AI Returns May Decentralize Locally
- Localized, efficient models can run on common hardware, so AI returns won't all centralize to mega-data-centers.
- This enables small businesses and individuals to run powerful AIs, shifting where economic value accrues.
