Vance Backs State AI Equity While Musk Advocates Direct Cash Payments to Combat Deflation
2026-06-21 10:13

Per Woofun AI, U.S. Vice President JD Vance disclosed in an interview with 'CEO Diary' that President Trump supports creating a sovereign wealth fund to hold equity in frontier AI firms. Vance argues that unchecked monopolies must be curbed through state ownership and labor participation, ensuring workers share in AI-driven economic dividends.

Elon Musk countered on X, asserting that direct Treasury cash distributions to the public are preferable to government corporate equity holdings. He posited that AI and robotics will cause goods supply to outpace money supply growth, leading to 'major deflation' rather than inflation. This highlights a strategic divergence: Vance favors production-side revenue sharing, while Musk advocates consumption-side subsidies without altering corporate ownership structures.

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JD Vance
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