Global Macro Update The Fatal Mistake Handing the AI Race to China
Oct 24, 2025
Jacob Shapiro, director of geopolitical research at the Bespoke Group, dives into the complexities of the AI arms race and its implications for the U.S. and China. He discusses how China's focus on practical AI outpaces U.S. innovation, influenced by its centralized planning and ruthless capitalism. Jacob also explores Mexico's potential as a manufacturing hub amid U.S.-Mexico relations affected by drug cartels. He argues that understanding macro forces is crucial to navigating these geopolitics, making for a thought-provoking conversation.
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Episode notes
AI Is A Productivity Layer, Not A Single Bet
- Think of AI like containerization: the revolution benefits users, not a single company to invest in.
- Value flows to firms that apply AI to increase productivity, not to builders of a mythical AGI.
China Prioritizes Practical AI Deployment
- China focuses on productizing AI for real uses while the U.S. chases AGI and massive models.
- That practical orientation gives China an edge in deploying efficiency-boosting AI applications.
Protect Data And Augment Professionals
- Protect proprietary data and build internal models rather than freely feeding public models.
- Train professionals to use AI to augment their skills instead of expecting AI to replace them entirely.
