The conflict in Ukraine exposed the vulnerability of expensive, "exquisite" military platforms (like tanks) to inexpensive technologies (like drones). This has shifted defense priorities toward cheap, mass-producible, "attritable" systems. This fundamental change in product and economics creates a massive opportunity for startups to innovate outside the traditional defense prime model.

From China's perspective, producing more than it needs and exporting at cutthroat prices is a strategic tool, not an economic problem. This form of industrial warfare is designed to weaken other nations' manufacturing bases, prioritizing geopolitical goals over profit.

Luckey argues that US foreign policy is shifting away from direct military intervention. The new, more effective strategy is to arm allies, turning them into "prickly porcupines" that are difficult to attack. This approach maintains US influence and economic benefits while avoiding the political and human cost of deploying troops.

While the US exports less to Canada by volume, its exports (electronics, pharma) have far higher margins and shareholder value multiples than Canadian exports (lumber, oil). Therefore, for every dollar of trade disrupted by tariffs, the US loses significantly more economic value, making the policy self-defeating.

Navigating technological upheaval requires the same crisis management skills as operating in a conflict zone: rapid pivoting, complex scenario planning, and aligning stakeholders (like donors or investors) around a new, high-risk strategy. The core challenges are surprisingly similar.

The key driver for military adoption of micro-reactors isn't cost savings, but eliminating the vulnerability of fuel supply chains. Fuel logistics accounted for 50% of casualties in Afghanistan. This frames the product's value around mission assurance and risk reduction, a more compelling proposition than simple energy provision.

Beyond the well-known semiconductor race, the AI competition is shifting to energy. China's massive, cheaper electricity production is a significant, often overlooked strategic advantage. This redefines the AI landscape, suggesting that superiority in atoms (energy) may become as crucial as superiority in bytes (algorithms and chips).

An emerging geopolitical threat is China weaponizing AI by flooding the market with cheap, efficient large language models (LLMs). This strategy, mirroring their historical dumping of steel, could collapse the pricing power of Western AI giants, disrupting the US economy's primary growth engine.

In Russia, nominally private companies like Gazprom function as direct extensions of the state. Their international investments are designed not just for profit but to achieve geopolitical goals, creating a system where foreign policy, business interests, and the personal wealth of the ruling class are completely inseparable.