In a universe where all AI investment goes to zero, wouldn’t you have the opposite effect? You can torch wealth but not the money supply, which ultimately _increases_ inflation, not decreases it.
There is only a short term inflation decrease while we produce what people mistakingly think is wealth. That can evaporate, but the money supply won’t.
It's confusing, but bankruptcy destroys mainly money, and only has second order effects on wealth.
What makes it hard to understand is that the Oracle going bankrupt on their debit because OpenAI took all their money is what would destroy the money. AFAIK, OpenAI itself doesn't have a lot of debit to burn. It would burn money that is currently on the hands of Oracle's creditors.
And bankruptcy is a bit of an extreme example, but just people thinking Oracle is less credit-worthy would destroy some money already. Repeat that for every company that invested in OpenAI.
There is only a short term inflation decrease while we produce what people mistakingly think is wealth. That can evaporate, but the money supply won’t.