Cathie Wood Says Official Inflation Data Underestimates Massive Deflation in AI and Software

Cathie Wood argues that official inflation data is failing to capture the rapid decline in AI and software costs.
- AI training and inference costs are falling by 75% to 99% annually, suggesting technology deflation is significantly greater than official figures indicate.
- The Consumer Price Index (CPI) and Producer Price Index (PPI) may be substantially mismeasuring software and technology prices.
- While DRAM prices have surged, other segments of the technology sector are experiencing significant deflation.
Wood believes traditional inflation measures are not adequately reflecting the accelerating decline in technology costs.