AI makes – Elon Musk says AI and robotics could create such abundance that governments would step in with universal high income and people could opt out of work. Michael Burry disagrees, warning that a revolution could come first as AI displaces workers at scale.
Elon Musk’s latest claim doesn’t land like a tech update—it reads like a life plan. On X, the CEO of Tesla and SpaceX posted that “AI+Robots will be able to do everything, resulting in universal high income,” adding, “Work will be optional.”
Less than a day later, Michael Burry cut straight through the optimism. The investor—known for “The Big Short” and now writing on Substack after pivoting away from running a hedge fund—responded with a single. blunt word: “False.” Then he added what he sees as the missing piece of the timeline: “There will be revolution first.” The exchange began after Musk was responding to an essay on X by fellow tech billionaire Chamath Palihapitiya.
Palihapitiya’s essay. titled “The Great Descent. ” argued that the “cost of expertise is falling to zero. ” driven by AI models that allow everyone to access intelligence. Burry’s pushback suggests he thinks that access won’t arrive as a smooth landing for workers whose jobs are undercut—or replaced—by machines.
Musk’s broader argument is built on a practical promise: AI. robotics. and other technologies will cut costs and boost efficiency enough that everyday essentials become cheaper. He has repeatedly said that food, housing, utilities, healthcare, and other necessities will cost far less. In that world. he argues. governments could then afford to give citizens enough money to live comfortably. freeing people from the need to work.
Musk’s version of the safety net goes beyond universal basic income. In April. he said. “Universal HIGH INCOME via checks issued by the Federal government is the best way to deal with unemployment caused by AI.” He framed universal high income (UHI) as different from universal basic income (UBI). explaining that UBI provides only enough money to cover basics such as gas. rent. and groceries.
He has also suggested that retirement saving could become less relevant. Musk has said that saving for retirement could be “irrelevant” in 20 years because, in his view, there will be so much wealth for all that people won’t need a nest egg.
Burry’s skepticism, however, isn’t about whether AI will change work. It’s about what happens along the way. His response—“False… There will be revolution first.”—echoes a concern that mass job displacement won’t be absorbed quietly.
Burry is not alone in warning of turbulence. Ray Dalio. founder of Bridgewater Associates. has said AI could worsen wealth inequality and increase the risk of internal strife. even civil war. Dalio told “The Diary of a CEO” podcast last fall that redistribution policy in the AI era is necessary. and that it must redistribute more than money—because “uselessness and money may not be a great combination.”.
JPMorgan CEO Jamie Dimon has taken a more mixed approach. He has said AI could eventually shorten the working week to 3.5 days. help people be healthier and live longer. and give them more time to hike and enjoy leisure activities. But he also warned that AI could replace jobs so quickly that it sends shockwaves through labor markets and economies. Dimon has said companies. governments. and other stakeholders need to work together to reskill people. move them to different roles. offer early retirement. and provide other support when AI makes workers redundant.
The tension between Musk and Burry is ultimately about sequencing. Musk imagines a future where AI and robotics eliminate the need to work—so that governments step in with universal high income and people can choose how to spend their time. Burry’s “revolution first” message lands as a warning that the social cost of disruption may arrive before abundance can be shared.
Musk and Burry did not immediately respond to requests for comment from Business Insider.
Elon Musk Michael Burry AI universal high income universal basic income Tesla SpaceX Chamath Palihapitiya The Great Descent Ray Dalio Bridgewater Associates Jamie Dimon JPMorgan AI jobs labor market disruption automation