In a recent episode of Nikhil Kamath’s WTF Podcast, Tesla CEO Elon Musk outlined his perspective on how the United States could address its rising debt crisis.

During the nearly two-hour discussion, Kamath asked Musk about the escalating US debt and possible solutions. Musk called the current debt level “insanely high” and noted that interest payments alone exceed the entire US military budget, a burden expected to grow in the short term.

Musk proposed that AI and robotics at large scale could be the key solution. According to him, these technologies would boost productivity significantly, potentially leading to deflation, as the output of goods and services would outpace money supply. This deflation, in turn, could help reduce the overall US debt burden.

“So long as civilisation keeps advancing, we will have AI and robotics at very large scale. That's the only thing that's gonna solve for the US debt crisis,” Musk said on the podcast.

The episode, featuring Musk’s insights on technology and economics, was released on YouTube on Sunday and has attracted widespread attention.

Musk emphasized that only with advances in AI and robotics can the US hope to manage its debt in a sustainable way, highlighting the transformative potential of technology in addressing macroeconomic challenges.