Silicon Valley investor Vinod Khosla said artificial intelligence (AI) could soon handle most of the work people do today. He warned that gains from AI will mostly go to investors, not workers, and called for changes in tax policy to better support those affected.
“I’m certain AI will do 80% of the economically valuable work humans do today… faster than most believe,” he posted on X.
Khosla, founder of Khosla Ventures and an early backer of OpenAI, has proposed eliminating preferential capital gains tax rates after 2028 and taxing them as ordinary income, a move he said could generate about $400 billion annually.
The funds would first support workers displaced by AI, with the remaining revenue used to reduce taxes for Americans earning under $75,000, he added.
In a series of posts on X, Khosla suggested introducing a tax on AI-driven productivity such as compute usage or robotic labour, potentially raising an additional $150 to $200 billion per year.
He also envisioned broader changes, including making basic expertise like legal or medical guidance nearly free through AI and enabling millions to become “micro-entrepreneurs”.
He added that the key challenge is not whether disruption will occur, but whether governments are prepared.
“Capitalism operates by permission of democracy,” he wrote, adding that society must choose between a more equitable future or growing inequality.