When OpenAI's leadership approached the Trump administration in late October 2025 with an ambitious request to expand Chips Act tax credits beyond semiconductor fabrication to cover AI data centers,...
Artificial intelligence is no longer just a technological breakthrough—it is reshaping the foundations of global power. From the U.S.–China rivalry to Europe’s regulatory push and the Gulf’s AI-driven ambitions, the geopolitics of AI reveals a world in flux. This article explores how AI is transforming political, economic, security, and cultural domains, and why its diffusion could fragment the global order, deepen inequalities, and heighten instability—unless new rules of digital diplomacy emerge.
Economic weapons offer compelling advantages over traditional military force, particularly among nuclear-armed powers where direct conflict risks catastrophic escalation. They provide plausible deniability, operate below thresholds that might trigger military responses, and leverage the complex interdependencies created by globalization. Yet they also generate unexpected consequences, from supply chain fragmentation to the acceleration of technological decoupling between major powers. Understanding how economic statecraft works—its tools, effectiveness, and limitations—has become essential for navigating contemporary geopolitics.