Post-AI Economy with Emad Mostaque — cyber•Economy

Our entire economic framework, from the Federal Reserve's policy levers to the concept of GDP, was built for a world of scarce intelligence. That world is ending.

In a conversation with cyber•Economy, Emad Mostaque, founder of Stability AI, Intelligent Internet and author of The Last Economy, lays out his thesis for the "Intelligence Inversion", a critical turning point where programmable AI replaces capital as the primary factor of production.

We explore the systemic consequences of this shift, including the imminent "sand pile collapse" of the knowledge worker market as autonomous agents become cheaper than minimum wage, and why the mathematical assumptions behind our current monetary systems no longer hold. Emad argues that to navigate this transition, we must remodel the economy itself as a generative process: a loss-minimization function that can be understood with the same mathematics that power diffusion models.

2:51 - Intelligence inversion
6:03 - Negative marginal costs of AI
8:14 - AI Cold War: centralization vs. human-AI symbiosis
12:31 - Using crypto to incentivize aligned AI
18:06 - "Proof of Benefit" monetary system
23:33 - Universal Basic Capability
27:50 - RL environments and unsupervised agents
40:52 - "Sand pile collapse" of the labor market
46:34 - Why UBI math doesn't work
55:47 - Self-Driving economy
1:01:50 - New economic theory of generative AI
1:14:26 - Geopolitical winners and losers in the AI Transition
1:21:30 - Advice for the next generation
1:25:04 - Emad's personal AI workflow
1:33:38 - Conclusion & how to learn more

More about cyber•Fund and cybernetic economy: https://cyber.fund