Sacks argues AI will increase demand for knowledge workers by making code cheaper, following Jevons Paradox.
“So the amount of software generated in the economy was limited by that. I think it's gonna increase massively now because the cost of generating code is coming down so much.”
Sacks predicts a rush for the exits from California if the wealth tax gets on the ballot in April.
“If it gets on the ballot, you know, again, we'll know in just a few months, there's gonna be a huge freak out.”
Sacks predicts AI-generated code will grow from 5% today to 95%, offering to bet any amount.
“So number one is, with respect to this market for code or code tokens, whatever you wanna call it, it might be 5% today, meaning 5% of the codes AI generated versus human generated.”
Sacks claims vindication as AI job narrative shifted from loss to gains, matching his January prediction.
“And over the past week, you've now seen the narrative shift, I would say almost completely, towards that position.”
Sacks predicts AI capex will deliver returns and calls current volatility temporary and leverage-amplified.
“I think there will be a return on all of this capex and this is temporary market volatility amplified by leverage.”
Sacks predicts San Francisco ultra luxury real estate could reach $5,000 per square foot.
“I think the ultra luxury market in San Francisco could easily go to 5,000 a foot.”