El Salvador Partners with xAI to Bring AI into Public Schools

El Salvador has announced a partnership with xAI, the artificial intelligence company founded by Elon Musk, to integrate AI tools into the country’s public education system. The initiative aims to enhance digital literacy, modernize learning, and prepare students for an AI-driven global economy.

From a money supply and economic impact perspective, the move is largely structural rather than inflationary. By investing in technology and human capital instead of direct cash stimulus, El Salvador is channeling resources toward productivity growth. Over time, this can improve workforce efficiency, attract foreign investment, and strengthen economic output without immediately expanding domestic money supply.