#252 - Mexican Leverage

Jan 31, 2025

This discussion dives into the shake-up in the tech market caused by Deep Seek, a Chinese AI company, and its implications for U.S.-China relations. A closer look at Nvidia reveals how AI rivalry is shaping investor sentiment. The conversation shifts to the importance of decentralized tech and explores the intricate economic ties between the U.S. and Mexico. Amid geopolitical tensions, they emphasize Mexico's growing significance in trade and the future of U.S. foreign policy.

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INSIGHT

DeepSeek Shakes Tech Market

DeepSeek, a Chinese AI company, shook the tech market, causing Nvidia's stock to drop.
This highlights the growing US-China competition in AI and its impact on investor sentiment.

INSIGHT

Market Overreaction

The market reaction to DeepSeek was partly due to shaky foundations and a search for the next big AI play.
This overreaction highlights how market sentiment can be influenced by narratives and perceived threats.

INSIGHT

Decentralized AI

DeepSeek challenges the prevailing paradigm of expensive, centralized AI development championed by OpenAI.
It demonstrates the potential for cheaper, decentralized AI development, challenging the dominance of established tech giants.

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Jacob and Rob break down the tech market shake-up caused by Deep Seek, a rising Chinese AI company, and what it means for U.S.-China relations and global AI competition. They dive into Nvidia’s stock drop, how AI rivalry is driving investor sentiment, and the shift toward cheaper, decentralized tech. The conversation also explores the economic ties between the U.S., Mexico, and Canada, and how these relationships will shape trade policies. Throughout, they stress the need for a clear-eyed view of market trends and stability in U.S.-Mexico relations amid growing tensions with China.

Timestamps:

(00:02) - Intro

(01:06) - Market Reactions and AI Developments

(10:24) - Decentralization and Global Dynamics Within AI

(34:30) - Shifting Geopolitical Dynamics and Economic Policies

(37:15) - Mexico's Economic Position and Geopolitical Leverage

(54:14) - U.S. Foreign Policy and Global Primacy

Jacob Shapiro Site: jacobshapiro.com

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The Jacob Shapiro Show is produced and edited by Audiographies LLC. More information at audiographies.com

Jacob Shapiro is a speaker, consultant, author, and researcher covering global politics and affairs, economics, markets, technology, history, and culture. He speaks to audiences of all sizes around the world, helps global multinationals make strategic decisions about political risks and opportunities, and works directly with investors to grow and protect their assets in today’s volatile global environment. His insights help audiences across industries like finance, agriculture, and energy make sense of the world.

Cognitive Investments is an investment advisory firm, founded in 2019 that provides clients with a nuanced array of financial planning, investment advisory and wealth management services. We aim to grow both our clients’ material wealth (i.e. their existing financial assets) and their human wealth (i.e. their ability to make good strategic decisions for their business, family, and career).

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