THE GLOBAL RACE FOR AI SOVEREIGNTY: WHAT ARE THE GEOPOLITICS OF THE AI VALUE CHAIN?

In a dynamic discussion, participants explore the rapid advancements in AI and the geopolitical shifts accompanying them. The Middle East emerges as a pivotal player, leveraging its energy resources and investment expertise to become a central hub in the AI landscape. The U.S. and China are the primary AI superpowers, with the U.S. holding a temporary advantage due to export controls on China. However, the U.S. faces challenges in meeting AI infrastructure demands domestically, prompting consideration of the Middle East as a strategic partner. Europe, while a potential ally, struggles with regulatory and coalition complexities. Meanwhile, China is innovating to close the gap in AI capabilities, despite hardware limitations. The discussion also highlights the critical role of Taiwan in the global chip market and the geopolitical implications of its energy dependencies. Despite the potential benefits of cooperation, geopolitical tensions between the U.S. and China hinder collaboration, pushing towards economic confrontation.