Elon Musk claims AI will end poverty: Here’s what you need to know

Elon Musk has once again sparked debate after predicting that artificial intelligence (AI) will eventually eliminate poverty, arguing that there may one day be “no need to save money.” 

Musk's comments come amid growing discussion around new savings initiatives for American children backed by some of the world’s wealthiest figures.

The remarks also followed an announcement by Ray Dalio, founder of Bridgewater Associates, who said he and his wife plan to contribute $250 each to the savings accounts of 300,000 children enrolled in a federal program. 

The initiative stems from legislation introduced under President Donald Trump, which provides US-born children between January 1, 2025, and December 31, 2028, with a government-funded savings account worth $1,000, regardless of household income.

However, Musk emerged as a vocal critic after responding to Dalio on X (formerly Twitter). 

He noted that poverty would not exist in the future, claiming AI would usher in “universal high income.” 

"It is certainly a nice gesture of the Dells, but there will be no poverty in the future, and so no need to save money. There will be universal high income,” Musk wrote.

Notably, Musk has repeatedly argued that advanced AI and robotics could meet all human needs, reducing the role of money altogether.