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Our entire economic framework, from the Federal Reserve's policy levers to the concept of GDP, was built for a world of scarce intelligence. That world is ending. In a conversation with cyber•Economy, Emad Mostaque, founder of Stability AI, Intelligent Internet and author of The Last Economy, lays out his thesis for the "Intelligence Inversion", a critical turning point where programmable AI replaces capital as the primary factor of production. We explore the systemic consequences of this shift, including the imminent "sand pile collapse" of the knowledge worker market as autonomous agents become cheaper than minimum wage, and why the mathematical assumptions behind our current monetary systems no longer hold. Emad argues that to navigate this transition, we must remodel the economy itself as a generative process: a loss-minimization function that can be understood with the same mathematics that power diffusion models. 2:51 - Intelligence inversion 6:03 - Negative marginal costs of AI 8:14 - AI Cold War: centralization vs. human-AI symbiosis 12:31 - Using crypto to incentivize aligned AI 18:06 - "Proof of Benefit" monetary system 23:33 - Universal Basic Capability 27:50 - RL environments and unsupervised agents 40:52 - "Sand pile collapse" of the labor market 46:34 - Why UBI math doesn't work 55:47 - Self-Driving economy 1:01:50 - New economic theory of generative AI 1:14:26 - Geopolitical winners and losers in the AI Transition 1:21:30 - Advice for the next generation 1:25:04 - Emad's personal AI workflow 1:33:38 - Conclusion & how to learn more More about cyber•Fund and cybernetic economy: https://cyber.fund