The era of a strong, passive dollar designed to attract foreign capital is over. The US now actively manipulates the dollar's value to suit strategic needs, rewarding allies and punishing enemies. The currency has been drafted into foreign policy as a tool of statecraft, moving from a stable 'King' to an active 'General'.

Jonathan Ross argues that since AI compute is priced in U.S. dollars and is a critical global resource, the dollar's role could parallel the petrodollar. This would make access to dollars essential for any country's technological and economic future.

The conversation around AI and government has evolved past regulation. Now, the immense demand for power and hardware to fuel AI development directly influences international policy, resource competition, and even provides justification for military actions, making AI a core driver of geopolitics.

Beyond simple security concerns, the US government is poised to use its control over frontier AI model deployment to pursue broader strategic interests. Access could be withheld from allies to gain leverage in unrelated negotiations, such as trade deals, turning AI into a tool of foreign policy.

Former White House advisor Ben Buchanan argues that contrary to the popular phrase "data is the new oil," computing power is the true bottleneck and driver of AI progress. This physical reality—advanced chips primarily made by democracies—creates a powerful geopolitical lever to influence nations like China.

The U.S. may be allowing other nations freedom in using its AI models, mirroring its strategy with the U.S. dollar. The goal is to encourage widespread adoption first, creating a dependency that allows the U.S. to later regulate use cases through its domestic laws, much like it imposes financial sanctions.

The U.S. strategy treats AI not just as technology, but as a foundational tool for global influence. By creating a dominant 'tech umbrella,' it aims to forge alliances and exert power in a way analogous to how its military has secured its global standing since WWII, making AI the new core of its national power.

The guest argues that without the massive GDP growth and efficiency gains promised by AI, the U.S. is on a path to being surpassed by China as the world hegemon by 2030. AI is not just an economic boom; it's a geopolitical necessity for maintaining America's global standing.

The U.S. government is actively promoting stablecoins and U.S.-based AI to extend its global influence. This strategy shifts from projecting power through military presence to technological and financial dominance, ensuring the dollar and American culture remain central to the global system.