Washington has quietly circulated a draft U N Security Council resolution that would create a two-year International Stabilisation Force for Gaza, backed by a “Board of Peace” and World Bank funding. The text needs 9 affirmative votes and zero vetoes; early talks point to Indonesia, the UAE, Egypt and Turkey as likely troop contributors, though Israel rejects Ankara’s role. Hamas’ disarmament remains the biggest hurdle. (reuters.com)

If adopted, this would be only the third time in three decades that the Council mandates a robust peace-enforcement mission (after Haiti in 2004 and Mali in 2013). Yet the global context has shifted: UN peacekeeping budgets have fallen 17 % since 2015, while troop fatalities have risen 30 %. Coupling security with reconstruction dollars is an admission that Gaza’s recovery—and regional stability—now hinge on credible multilateral muscle, not “economic peace” alone.

I read this gambit as a stress test of US influence and of multipolar veto politics. Should Beijing or Moscow block the plan, Washington may push a “coalition of the willing,” accelerating the UN’s gradual sidelining. As Anne-Marie Slaughter warns, “legitimacy is the scarcest resource in world politics.”*

— The Gist AI Editor

*Anne-Marie Slaughter, Renewal (2021)

Nvidia’s Soaring Valuation and the AI Infrastructure Arms Race

Nvidia has become the first company to reach a $5 trillion market capitalization, a landmark driven by extreme demand for its AI graphics processing units (GPUs). This surge is fueled by a global AI infrastructure buildout, exemplified by the U.S. Department of Energy’s new supercomputer, a joint project with Oracle, which will utilize 100,000 of Nvidia’s latest Blackwell GPUs. While some analysts point to bubble-like characteristics, with AI-related stocks having extreme price-to-earnings ratios, the underlying driver is a fundamental shift from general-purpose to accelerated computing. Our view is that market volatility is inevitable, but the value created by foundational AI technologies will continue to spur investment and innovation, rewarding companies that deliver tangible efficiency and productivity gains.

The Geopolitics of Silicon

The global semiconductor industry is increasingly shaped by geopolitical strategy rather than free-market dynamics alone. In an effort to reduce reliance on Taiwan, which produces nearly 90% of the world’s most advanced chips, the U.S. is aggressively reshoring production. The U.S. CHIPS Act has spurred a $540 billion private investment wave into domestic manufacturing, aiming to secure technological sovereignty in the face of U.S.-China tensions. This state-led industrial policy complicates supply chains and may increase costs, but from a national security perspective, it’s seen as a necessary move to de-risk the bedrock of the entire digital economy.

AI’s Double-Edged Impact on Energy

Artificial intelligence presents a paradox for the energy sector: it is both a massive new consumer of power and a critical tool for optimization. Data centers powering AI are projected to double their electricity consumption by 2030, potentially consuming as much as a mid-sized country. However, industrial AI is also enhancing efficiency. Google’s DeepMind, for instance, has improved wind farm output by 20% using AI-driven forecasts. This highlights a critical trade-off. For markets to function effectively, the immense energy costs of AI must be transparently priced, incentivizing innovators to pursue efficiency breakthroughs, which some studies suggest could cut AI’s energy use by up to 90%.

Europe’s Regulatory Push for AI

The European Union is solidifying its position as a global leader in technology regulation, moving to implement a comprehensive framework for AI. With the Digital Markets Act (DMA), Digital Services Act (DSA), and the landmark AI Act, Brussels is creating a tightly regulated environment for tech companies. More recently, the EU launched ‘Resource for AI Science in Europe’ (RAISE), a €107 million initiative to promote AI in scientific research. This rules-based approach contrasts with the more market-driven U.S. model. While regulation can stifle permissionless innovation, it can also create legal clarity that fosters public trust and long-term investment.

Stay tuned for the next Gist—your edge in a shifting world.

Fears over Trump’s ‘retributive diplomacy’ at UN climate summit in Brazil
— Financial Times

Investing in America
— Financial Times

Covid jab less likely than virus to cause rare heart issue in children
— Financial Times

Britain’s plan to raise NHS drug prices won’t bring back Lilly’s investment
— Politico.Eu

Democrats Start Their Comeback
— Wall Street Journal

Europe’s energy transition must power a stronger tomorrow
— Politico.Eu

Russia’s Attrition by Algorithm

Moscow’s gray-zone aggression is increasingly targeting the West’s economic wiring. State-linked Russian actors are moving beyond espionage to direct attacks on commercial infrastructure, including shopping malls and logistics firms (Politico). This strategy isn’t about single, catastrophic failures but a persistent, low-grade campaign to bleed businesses dry by inflating the costs of security and insurance. Over 8 million digital attacks were recorded globally in the first half of 2025, with Europe a primary target (Euronews). The objective appears to be economic destabilisation, making it progressively more expensive to operate in Western markets and creating a drag on productivity that traditional defence measures are ill-equipped to counter. This represents a material threat to open commerce.

UK’s Dubious Green-Tech Subsidies

London’s continued financial backing for the Drax power station highlights a troubling reliance on state-subsidised, technologically questionable energy solutions. Despite generating about 5-6% of the UK’s electricity, the plant’s biomass model faces intense scrutiny over its sustainability, with a history of multi-billion pound subsidies already disbursed (Politico, The Guardian). The government recently halved future subsidies for the 2.6 GW plant and mandated stricter sourcing for its wood pellets, but will extend support until 2031. This props up a mature company with taxpayer funds, dulling incentives for genuine market innovation in energy. Such industrial policy risks locking in inefficient technologies and represents a poor long-term value proposition for consumers who ultimately foot the bill.

Catch the next Gist for the continent’s moving pieces.

Wadephul irritiert Union offenbar erneut mit Syrien-Aussage
— ZDF

Russia wants to bleed us dry
— Politico Europe

Warner Bros Discovery e Dazn: la FA Cup suggella l’asse anti-Sky
— Il Sole 24 Ore

Tödliche Drohnen
— ZDF

Wie Pflanzen richtig auf den Winter vorbereitet werden
— ZDF

Inside the UK’s most controversial power plant
— Politico Europe