The common analogy of AI to electricity is dangerously rosy. AI is more like fire: a transformative tool that, if mismanaged or weaponized, can spread uncontrollably with devastating consequences. This mental model better prepares us for AI's inherent risks and accelerating power.

The AI race has been a prisoner's dilemma where companies spend massively, fearing competitors will pull ahead. As the cost of next-gen systems like Blackwell and Rubin becomes astronomical, the sheer economics will force a shift. Decision-making will be dominated by ROI calculations rather than the existential dread of slowing down.

The justification for accelerating AI development to beat China is logically flawed. It assumes the victor wields a controllable tool. In reality, both nations are racing to build the same uncontrollable AI, making the race itself, not the competitor, the primary existential threat.

New technologies perceived as job-destroying, like AI, face significant public and regulatory risk. A powerful defense is to make the general public owners of the technology. When people have a financial stake in a technology's success, they are far more likely to defend it than fight against it.

Using AI for incremental efficiency gains (10% thinking) is becoming table stakes. True competitive advantage lies in 10X thinking: using AI to fundamentally reimagine your business model, services, and market approach. Companies that only optimize will be outmaneuvered by those that transform.

A ban on superintelligence is self-defeating because enforcement would require a sanctioned, global government body to build the very technology it prohibits in order to "prove it's safe." This paradoxically creates a state-controlled monopoly on the most powerful technology ever conceived, posing a greater risk than a competitive landscape.

Unlike mobile or internet shifts that created openings for startups, AI is an "accelerating technology." Large companies can integrate it quickly, closing the competitive window for new entrants much faster than in previous platform shifts. The moat is no longer product execution but customer insight.

AI will create negative consequences, like the internet spawned the dark web. However, its potential to solve major problems like disease and energy scarcity makes its development a net positive for society, justifying the risks that must be managed along the way.

While AI-driven efficiency is an obvious first step, it often results in workforce reduction if company growth is flat. True differentiation and sustainable advantage come from using AI for innovation—creating new products, markets, and business models to fuel growth.