John Micklethwait 2.0 5 ideas

Micklethwait notes, "The Chinese are winning there [Robotics and Energy]." Anja Manuel adds she saw "mountains covered with solar panels" and "robotics are unbelievable" in China. While the US wins on software, China has cornered the market on physical implementation (robotics) and power generation (solar). Investors looking for exposure to the *industrial application* of AI (robotics) or the energy transition may find better tech in Chinese equities, despite the geopolitical risk. Watch Chinese Robotics and Solar sectors. If geopolitical tensions ease, these assets are fundamentally strong; currently, they are a "Watch" due to political risk. US sanctions; tariffs; uninvestable geopolitical climate.

Micklethwait observes, "Americans are winning white-collar AI, ChatGPT, Anthropic and Gemini." The geopolitical landscape is splitting technology stacks. The US has a distinct lead in the "brain" of AI (LLMs and software). As global instability rises, capital will flow to the winners of the "White Collar" AI race for safety and growth. Long US Big Tech (specifically Model Providers) as the dominant force in generative AI. Regulatory crackdown; AI capex bubble.