LONDON: US President Donald Trump’s administration has made the AI boom a signature economic bet. A strike on Iran after the US midterm elections could potentially blow that up.
The White House has doubled down on its support for the artificial intelligence revolution, claiming that the country that wins the AI arms race will win the future.
Yet, at the same time, the US government has indicated that it may attack Iran again after Tuesday's midterms if no new ceasefire deal is reached. The White House's signalling has been mixed in recent days, but, if pursued, this hawkish foreign policy threatens to undermine Trump’s AI vision.
That’s because a renewed Middle East conflict could intensify the current oil shock, keep inflation elevated and force the Federal Reserve and other central banks to tighten policy aggressively, pushing up funding costs for the data-centre buildout fuelling the AI boom.
