The Industrial Revolution marked the beginning of a monumental shift from manual production to mechanical production powered by steam engines. Decades later, Henry Ford invented the assembly line, dramatically reducing the cost of a Model T and putting car ownership within reach of the average American.
But Anduril founder Palmer Luckey believes production can go even further. In a conversation with Andreessen Horowitz partner Chris Dixon at a16z’s Founders Summit, the billionaire predicted that AI would make manufacturing so cheap that the cost of a car would drop by thousands of dollars.
“I truly believe that in our lifetime you will be able to buy something that looks like a Ford F-150 for $1,000,” Luckey said. “The cost of extracting and processing it will be close to zero, and we’re going to cut margins significantly. It’s just not that crazy.”
The technology founder predicts that vehicle production and recycling will become so cheap that cars could become seasonal purchases.
“I bet you can recycle [a car] with 90 percent efficiency at the end of the season,” Luckey said. “You’ll be wondering ‘what will my summer car be?’ Let’s go to the mall, buy one and try it on. » Luckey also said this efficiency will extend to residential construction as inputs such as steel, wood and energy become cheaper.
As the creator of the Oculus Rift VR headset and founder of defense products company Anduril, Luckey has spent years at the forefront of technology. He is optimistic about the economic potential of AI, citing its ability to significantly reduce costs and streamline operations.
The current state of AI in manufacturing
The Anduril founder predicts that AI will disrupt the economics of manufacturing, adapting current streamlined processes for things like producing clothing to larger projects, like building a car or a house.
“I think what you’re going to see is the same level of automation that has dominated textiles and agriculture. [will] start applying to everything,” Luckey said. “AI is going to make it easier to extract, process and manufacture resources.”
Luckey paints a sunny picture of the future of the production line in the age of AI. Some manufacturing companies have already reported higher ROI through AI implementation. Rockwell Automation 2025 State of Smart Manufacturing The report finds that generative or causal AI generated the largest ROI for 15% of manufacturing companies last year, with many companies using the technology to address labor shortages, guard against cybersecurity risks, and manage supply chains.
But even though AI plays a tangible role in some manufacturing processes, it is still far from reducing costs. The cost of a vehicle in the United States hit a record high of $50,080 in 2025, according to Kelley Blue Booka vehicle appraisal company. Housing prices have also remained The median home price in the United States peaked in 2022 and has remained above $400,000 for the past several years.
Luckey said, however, that it’s not the inputs that keep costs high. He added that he believed the government was the factor keeping prices extremely high.
“The components are not expensive,” Luckey insisted. “It’s the processing and regulation that has made this very expensive.”
For Luckey, the path to radical accessibility depends less on new scientific discoveries than on overcoming political bottlenecks.
“That’s what I mean when I say we don’t need a technological breakthrough so much as we need to just do things,” Luckey said. “The technology to do this is going to catch up.”
