Navigator: Global Chokeholds and AI Chokepoints
This report looks at Global Chokeholds where geonomics strangles supply of food and energy: The Red Sea, The Gulf, The Black Sea and a few other seas like Azov and the Caspian. El Nino may shortly add the Panama Canal to the list where one fifth of transits are of bulk grain vessels. It charts how much of global demand is throttled and what this means for energy and food inflation.
Then it transits to AI and looks at the Chokepoint in the architecture of AI that limits effectiveness and which will attract high returns and further resources. That is memory.
But there is another AI Chokepoint. Previous analysis has compared the US Vs China AI business model. It found China to be the winner in terms of cost competitiveness per unit of compute.
Today, we look at the financial model underpinning AI and find it downright dangerous and a threat not only to the success of the US AI Model but also to the US economy.
You may not agree with our views. But I hope the analysis is worth reading.