How AI could impact geopolitics

The pressing issue surrounding AI isn't just its potential effects on markets or economies; it's about whether the US can maintain its lead in generative AI. This challenge stems from inadequate US infrastructure—data centers are short on space and power, and the energy grid struggles to meet the high demands of AI operations. The US has three imperfect strategies to tackle this problem: collaborating with allied nations facing similar infrastructure issues, tapping into cheaper energy sources in the Global South (which could give China an advantage), or forming partnerships with the Middle East (which raises long-term geopolitical concerns). The discussion wraps up by examining China's efforts to catch up, the vital importance of US-Middle East relations, and the ongoing uncertainty regarding future US policies toward China, regardless of which administration is in power.