Cathie Wood urges reflecting AI cost declines in CPI and PPI

Cathie Wood, CEO of ARK Invest, argued that falling AI costs represent “good deflation” that the Federal Reserve should factor into its inflation assessments, claiming AI inference costs for constant-performance models dropped 99.99% year-over-year between late September and early October, according to Crypto Briefing. Wood contends these software cost declines are not adequately reflected in CPI and PPI readings, though the figure is her own assertion rather than an independently verified statistic. The argument matters because it challenges how official inflation data capture technology-driven price declines, which could influence the Fed's rate path. What to watch next is whether upcoming CPI and PPI prints show any measurable drag from AI-related software deflation, and whether other economists corroborate Wood's inference-cost estimates.