Rapidus, The End of Economic Rationality, AI Disruption

This Stratechery update discusses Japan's ambitious semiconductor gamble (Rapidus), the diminishing role of economic rationality in global tech decisions, and the disruptive potential of AI. The podcast analyzes Rapidus's high-risk, high-reward approach to challenging industry giants like TSMC, highlighting the significant government investment and the uncertainties involved. It then shifts to the broader theme of decisions driven by geopolitical factors rather than pure economic efficiency, exemplified by government subsidies for chip manufacturing and potential AI-driven job displacement. Finally, it connects these trends to increased uncertainty in forecasting technological advancements and market behavior, drawing parallels to Apple's forecasting challenges post-iPhone 6S. The speaker concludes by noting the increased uncertainty in the tech landscape.