We begin today’s Altucher Confidential with a scene from the hit movie “There Will Be Blood”:

"If you have a milkshake and I have a straw... I drink your milkshake. I drink it up!"

Most ALC members will no doubt know the reference: The movie depicted the cutthroat underbelly of the most important industry of the past century-plus: oil.

This was a story of technology.

Daniel Plainview’s ability to drain oil from adjacent lands revealed how tech superiority gave him a strategic advantage.

Zooming out, the movie’s power dynamic also reflects how oil has shaped relationships between developed nations and resource-rich developing countries - the zeitgeist of 20th century geopolitics.

Today, as you know, a new resource competition is emerging - centered around GPUs (Graphics Processing Units).

Consider the similarities:

→ Countries are already viewing AI capabilities as crucial for national security, making access to GPUs a matter of strategic importance.

→ Just as oil drove economic growth in the 20th century, AI is expected to be a major economic driver in the coming decades, making GPUs invaluable.

→ The U.S. has already imposed export controls on high-end chips to China, creating tensions similar to those seen in oil politics.

→ New alliances are forming around GPU and AI technology access, reshaping global partnerships.

That last point is significant.

Consider the U.S. efforts to restrict China's access to advanced chips while courting Middle Eastern tech companies. It not only echoes past conflicts, but shows the strategic importance of these resources.

In the past, oil companies had control over crucial resources or technologies. They had the ability to influence policies and shape international relations.

Now, increasingly, the new City of Kings is those with the most computing power.

Hence the hastened development of xAI’s 100,000 H100 data center in Tennessee.

Despite all the similarities…

There’s one key difference between the world of Daniel Plainview’s world and that of Sam Altman: The speed at which these companies can affect global dynamics is unprecedented.

In fact…

AI is moving so fast, the power dynamics can shift at any moment. And, according to James, that’s exactly what’s happening right now.

More on that to come tomorrow.