Musk forecasts AI-driven economic boom, predicts machines may outthink humans by 2026
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By Juliet Umeh
Billionaire entrepreneur and Tesla CEO, Elon Musk, has projected a future driven by artificial intelligence, predicting that AI could surpass human intelligence as early as 2026 and unlock an era of unprecedented global economic abundance powered by machines, robotics, and autonomous systems.
Speaking at a high-level dialogue during the World Economic Forum, WEF, in Davos, Musk said AI and robotics represent the only realistic pathway to solving global poverty and delivering a high standard of living for all.
“If you want to solve global poverty and create abundance for everyone, the only path is AI and robotics,” Musk said. “With billions of humanoid robots, global economic output will expand beyond anything we’ve ever seen.”
Musk explained that the rapid scaling of AI systems, combined with autonomous humanoid robots, would fundamentally reshape labour, productivity, and wealth creation, even as it raises profound questions about the future of work and human purpose.
According to Musk, Tesla’s humanoid robots are already performing basic factory tasks and are expected to handle complex industrial work by the end of 2026, with consumer deployment to follow.
“By the end of next year, we expect to start selling humanoid robots to the public, once we are confident in their safety and reliability,” he said.
He added that widespread deployment of robots could address critical global challenges, including elderly care, labour shortages, and rising service costs.
“Everyone will want a robot to take care of elderly parents, watch over children, or manage daily tasks,” Musk noted.
Musk warned that AI’s pace of development is accelerating faster than most policymakers and institutions realise, suggesting that superhuman AI capabilities are imminent.
“I think we may have AI smarter than any human by the end of this year or next year at the latest,” he said. “By 2030 or 2031, AI could be smarter than all of humanity combined.”
Despite his optimism, Musk cautioned that AI development must be carefully managed to avoid catastrophic risks.
“We need to be very careful with AI and robotics. We don’t want to find ourselves living in a Terminator movie,” he said.
Musk identified electricity generation as the biggest constraint to scaling AI globally, noting that while AI chip production is growing exponentially, power generation is expanding far more slowly.
“The limiting factor for AI deployment is electrical power,” he said.
He pointed to China’s aggressive investment in solar energy, where over 1,000 gigawatts of solar capacity is being deployed annually, as a model for supporting AI-driven growth.
Solar is by far the biggest source of energy. Ultimately, almost all energy comes from the sun,” Musk said.
In one of his most ambitious projections, Musk revealed plans to deploy solar-powered AI data centres in space, arguing that orbit offers the lowest-cost environment for running AI systems.
“Space is always sunny, extremely cold for cooling, and infinitely scalable,” he said. “Within two to three years, the lowest-cost place to run AI will be space.”
He disclosed that Tesla and SpaceX are working toward manufacturing up to 100 gigawatts of solar power annually, supporting both terrestrial and space-based AI infrastructure.
While AI dominated the discussion, Musk referenced Tesla’s 43 per cent compounded return since going public as evidence of how disciplined engineering and long-term technology bets can outperform traditional investment strategies.
“We have an incredible engineering team. Progress comes down to engineering discipline, scale, and execution,” he said.
Reflecting on his journey, Musk said his fascination with science fiction shaped his vision for artificial intelligence and advanced technology.
“I want to make science fiction science fact,” he said. “AI will help us answer the biggest questions, about life, the universe, and what we don’t yet know to ask.”
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