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A.I. Computing Power Is Splitting the World Into Haves and Have-Nots

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A.I. Computing Power Is Splitting the World Into Haves and Have-Nots

Where A.I. Data Centers Are Located

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Only 32 nations, mostly in the Northern Hemisphere, have A.I.-specialized data centers.

Source: Oxford University

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Note: Count of data centers in China excludes facilities in Hong Kong and Taiwan.

Last month, Sam Altman, the chief executive of the artificial intelligence company OpenAI, donned a helmet, work boots and a luminescent high-visibility vest to visit the construction site of the company’s new data center project in Texas.

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Bigger than New York’s Central Park, the estimated $60 billion project, which has its own natural gas plant, will be one of the most powerful computing hubs ever created when completed as soon as next year.

Around the same time as Mr. Altman’s visit to Texas, Nicolás Wolovick, a computer science professor at the National University of Córdoba in Argentina, was running what counts as one of his country’s most advanced A.I. computing hubs. It was in a converted room at the university, where wires snaked between aging A.I. chips and server computers.

“Everything is becoming more split,” Dr. Wolovick said. “We are losing.”

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Nicolás Wolovick, a computer science professor at the National University of Cordoba in Argentina. “We are losing,” he said.

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Sarah Pabst for The New York Times

Artificial intelligence has created a new digital divide, fracturing the world between nations with the computing power for building cutting-edge A.I. systems and those without. The split is influencing geopolitics and global economics, creating new dependencies and prompting a desperate rush to not be excluded from a technology race that could reorder economies, drive scientific discovery and change the way that people live and work.

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The biggest beneficiaries by far are the United States, China and the European Union. Those regions host more than half of the world’s most powerful data centers, which are used for developing the most complex A.I. systems, according to data compiled by Oxford University researchers. Only 32 countries, or about 16 percent of nations, have these large facilities filled with microchips and computers, giving them what is known in industry parlance as “compute power.”

The United States and China, which dominate the tech world, have particular influence. American and Chinese companies operate more than 90 percent of the data centers that other companies and institutions use for A.I. work, according to the Oxford data and other research.

In contrast, Africa and South America have almost no A.I. computing hubs, while India has at least five and Japan at least four, according to the Oxford data. More than 150 countries have nothing.

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Today’s A.I. data centers dwarf their predecessors, which powered simpler tasks like email and video streaming. Vast, power-hungry and packed with powerful chips, these hubs cost billions to build and require infrastructure that not every country can provide. With ownership concentrated among a few tech giants, the effects of the gap between those with such computing power and those without it are already playing out.

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Mr. Wolovick runs one of Argentina’s most advanced A.I. computing hubs out of a converted classroom at his university.

Video by Sarah Pabst for The New York Times

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The world’s most used A.I. systems, which power chatbots like OpenAI’s ChatGPT, are more proficient and accurate in English and Chinese, languages spoken in the countries where the compute power is concentrated. Tech giants with access to the top equipment are using A.I. to process data, automate tasks and develop new services. Scientific breakthroughs, including drug discovery and gene editing, rely on powerful computers. A.I.-powered weapons are making their way onto battlefields.

Nations with little or no A.I. compute power are running into limits in scientific work, in the growth of young companies and in talent retention. Some officials have become alarmed by how the need for computing resources has made them beholden to foreign corporations and governments.

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“Oil-producing countries have had an oversized influence on international affairs; in an A.I.-powered near future, compute producers could have something similar since they control access to a critical resource,” said Vili Lehdonvirta, an Oxford professor who conducted the research on A.I. data centers with his colleagues Zoe Jay Hawkins and Boxi Wu.

A.I. computing power is so precious that the components in data centers, such as microchips, have become a crucial part of foreign and trade policies for China and the United States, which are jockeying for influence in the Persian Gulf, in Southeast Asia and elsewhere. At the same time, some countries are beginning to pour public funds into A.I. infrastructure, aiming for more control over their technological futures.

The Oxford researchers mapped the world’s A.I. data centers, information that companies and governments often keep secret. To create a representative sample, they went through the customer websites of nine of the world’s biggest cloud-service providers to see what compute power was available and where their hubs were at the end of last year. The companies were the U.S. firms Amazon, Google and Microsoft; China’s Tencent, Alibaba and Huawei; and Europe’s Exoscale, Hetzner and OVHcloud.

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The research does not include every data center worldwide, but the trends were unmistakable. U.S. companies operated 87 A.I. computing hubs, which can sometimes include multiple data centers, or almost two-thirds of the global total, compared with 39 operated by Chinese firms and six by Europeans, according to the research. Inside the data centers, most of the chips — the foundational components for making calculations — were from the U.S. chipmaker Nvidia.

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An Nvidia H100 graphics processing unit.

Marlena Sloss/Bloomberg

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“We have a computing divide at the heart of the A.I. revolution,” said Lacina Koné, the director general of Smart Africa, which coordinates digital policy across the continent. He added: “It’s not merely a hardware problem. It’s the sovereignty of our digital future.”

‘Sometimes I Want to Cry’

There has long been a tech gap between rich and developing countries. Over the past decade, cheap smartphones, expanding internet coverage and flourishing app-based businesses led some experts to conclude that the divide was diminishing. Last year, 68 percent of the world’s population used the internet, up from 33 percent in 2012, according to the International Telecommunication Union, a United Nations agency.

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With a computer and knowledge of coding, getting a company off the ground became cheaper and easier. That lifted tech industries across the world, be they mobile payments in Africa or ride hailing in Southeast Asia.

But in April, the U.N. warned that the digital gap would widen without action on A.I. Just 100 companies, mostly in the United States and China, were behind 40 percent of global investment in the technology, the U.N. said. The biggest tech companies, it added, were “gaining control over the technology’s future.”

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Few Companies Control A.I. Computing

Tiles show total availability zones for A.I. offered by each company, a metric used by researchers as a proxy for A.I. data centers.

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Source: Oxford University

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The gap stems partly from a component everyone wants: a microchip known as a graphics processing unit, or GPU. The chips require multibillion-dollar factories to produce. Packed into data centers by the thousands and mostly made by Nvidia, GPUs provide the computing power for creating and delivering cutting-edge A.I. models.

Obtaining these pieces of silicon is difficult. As demand has increased, prices for the chips have soared, and everyone wants to be at the front of the line for orders. Adding to the challenges, these chips then need to be corralled into giant data centers that guzzle up dizzying amounts of power and water.

Many wealthy nations have access to the chips in data centers, but other countries are being left behind, according to interviews with more than two dozen tech executives and experts across 20 countries. Renting computing power from faraway data centers is common but can lead to challenges, including high costs, slower connection speeds, compliance with different laws, and vulnerability to the whims of American and Chinese companies.

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Qhala, a start-up in Kenya, illustrates the issues. The company, founded by a former Google engineer, is building an A.I. system known as a large language model that is based on African languages. But Qhala has no nearby computing power and rents from data centers outside Africa. Employees cram their work into the morning, when most American programmers are sleeping, so there is less traffic and faster speeds to transfer data across the world.

“Proximity is essential,” said Shikoh Gitau, 44, Qhala’s founder.

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“If you don’t have the resources for compute to process the data and to build your A.I. models, then you can’t go anywhere,” said Kate Kallot, a former Nvidia executive and the founder of Amini, another A.I. start-up in Kenya.

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Kate Kallot, founder of Amini, an A.I. start-up, at the company’s office in Nairobi, Kenya.

Natalia Jidovanu for The New York Times

In the United States, by contrast, Amazon, Microsoft, Google, Meta and OpenAI have pledged to spend more than $300 billion this year, much of it on A.I. infrastructure. The expenditure approaches Canada’s national budget. Harvard’s Kempner Institute, which focuses on A.I., has more computing power than all African-owned facilities on that continent combined, according to one survey of the world’s largest supercomputers.

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Brad Smith, Microsoft’s president, said many countries wanted more computing infrastructure as a form of sovereignty. But closing the gap will be difficult, particularly in Africa, where many places do not have reliable electricity, he said. Microsoft, which is building a data center in Kenya with a company in the United Arab Emirates, G42, chooses data center locations based largely on market need, electricity and skilled labor.

“The A.I. era runs the risk of leaving Africa even further behind,” Mr. Smith said.

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Jay Puri, Nvidia’s executive vice president for global business, said the company was also working with various countries to build out their A.I. offerings.

“It is absolutely a challenge,” he said.

Chris Lehane, OpenAI’s vice president of global affairs, said the company had started a program to adapt its products for local needs and languages. A risk of the A.I. divide, he said, is that “the benefits don’t get broadly distributed, they don’t get democratized.”

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Tencent, Alibaba, Huawei, Google, Amazon, Hetzner and OVHcloud declined to comment.

The gap has led to brain drains. In Argentina, Dr. Wolovick, 51, the computer science professor, cannot offer much compute power. His top students regularly leave for the United States or Europe, where they can get access to GPUs, he said.

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“Sometimes I want to cry, but I don’t give up,” he said. “I keep talking to people and saying: ‘I need more GPUs. I need more GPUs.’”

Few Choices

The uneven distribution of A.I. computing power has split the world into two camps: nations that rely on China and those that depend on the United States.

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The two countries not only control the most data centers but are set to build more than others by far. And they have wielded their tech advantage to exert influence. The Biden and Trump administrations have used trade restrictions to control which countries can buy powerful A.I. chips, allowing the United States to pick winners. China has used state-backed loans to encourage sales of its companies’ networking equipment and data centers.

The effects are evident in Southeast Asia and the Middle East.

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In the 2010s, Chinese companies made inroads into the tech infrastructure of Saudi Arabia and the Emirates, which are key American partners, with official visits and generous financing. The United States sought to use its A.I. lead to push back. In one deal with the Biden administration, an Emirati company promised to keep out Chinese technology in exchange for access to A.I. technology from Nvidia and Microsoft.

In May, President Trump signed additional deals to give Saudi Arabia and the Emirates even more access to American chips.

A similar jostling is taking place in Southeast Asia. Chinese and U.S. companies like Amazon, Alibaba, Nvidia, Google and ByteDance, the owner of TikTok, are building data centers in Singapore and Malaysia to deliver services across Asia.

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Globally, the United States has the lead, with American companies building 63 A.I computing hubs outside the country’s borders, compared with 19 by China, according to the Oxford data. All but three of the data centers operated by Chinese firms outside their home country use chips from Nvidia, despite efforts by China to produce competing chips. Chinese firms were able to buy Nvidia chips before U.S. government restrictions.

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Where the World Gets Its A.I.

Companies and countries throughout the world rely mostly on major American and Chinese cloud operators for A.I. facilities.

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Source: Oxford University

Even U.S.-friendly countries have been left out of the A.I. race by trade limits. Last year, William Ruto, Kenya’s president, visited Washington for a state dinner hosted by President Joseph R. Biden Jr. Several months later, Kenya was omitted from a list of countries that had open access to needed semiconductors.

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That has given China an opening, even though experts consider the country’s A.I. chips to be less advanced. In Africa, policymakers are talking with Huawei, which is developing its own A.I. chips, about converting existing data centers to include Chinese-made chips, said Mr. Koné of Smart Africa.

“Africa will strike a deal with whoever can give access to GPUs,” he said.

If You Build It

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An aerial view of the construction underway on an A.I. infrastructure site that is a collaboration between OpenAI, SoftBank, and Oracle in Abilene, Texas.

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Daniel Cole/Reuters

Alarmed by the concentration of A.I. power, many countries and regions are trying to close the gap. They are providing access to land and cheaper energy, fast-tracking development permits and using public funds and other resources to acquire chips and construct data centers. The goal is to create “sovereign A.I.” available to local businesses and institutions.

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In India, the government is subsidizing compute power and the creation of an A.I. model proficient in the country’s languages. In Africa, governments are discussing collaborating on regional compute hubs. Brazil has pledged $4 billion on A.I. projects.

“Instead of waiting for A.I. to come from China, the U.S., South Korea, Japan, why not have our own?” Brazil’s president, Luiz Inácio Lula da Silva, said last year when he proposed the investment plan.

Even in Europe, there is growing concern that American companies control most of the data centers. In February, the European Union outlined plans to invest 200 billion euros for A.I. projects, including new data centers across the 27-nation bloc.

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Mathias Nobauer, the chief executive of Exoscale, a cloud computing provider in Switzerland, said many European businesses want to reduce their reliance on U.S. tech companies. Such a change will take time and “doesn’t happen overnight,” he said.

Still, closing the divide is likely to require help from the United States or China.

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Cassava, a tech company founded by a Zimbabwean billionaire, Strive Masiyiwa, is scheduled to open one of Africa’s most advanced data centers this summer. The plans, three years in the making, culminated in an October meeting in California between Cassava executives and Jensen Huang, Nvidia’s chief executive, to buy hundreds of his company’s chips. Google is also one of Cassava’s investors.

The data center is part of a $500 million effort to build five such facilities across Africa. Even so, Cassava expects it to address only 10 percent to 20 percent of the region’s demand for A.I. At least 3,000 start-ups have expressed interest in using the computing systems.

“I don’t think Africa can afford to outsource this A.I. sovereignty to others,” said Hardy Pemhiwa, Cassava’s chief executive. “We absolutely have to focus on and ensure that we don’t get left behind.”

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Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon

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Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon

President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.

In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”

“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.

The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.

Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.

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The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.

Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.

“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.

Anthropic didn’t immediately respond to a request for comment.

Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”

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The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.

On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.

The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.

Still, Amodei was worried about Washington’s commitment.

“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”

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Tech workers have backed Anthropic’s stance.

Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.

“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.

Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.

Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.

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“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”

Anthropic has distinguished itself from its rivals by touting its concern about AI safety.

The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”

Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.

The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.

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Video: The Web of Companies Owned by Elon Musk

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Video: The Web of Companies Owned by Elon Musk

new video loaded: The Web of Companies Owned by Elon Musk

In mapping out Elon Musk’s wealth, our investigation found that Mr. Musk is behind more than 90 companies in Texas. Kirsten Grind, a New York Times Investigations reporter, explains what her team found.

By Kirsten Grind, Melanie Bencosme, James Surdam and Sean Havey

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Commentary: How Trump helped foreign markets outperform U.S. stocks during his first year in office

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Commentary: How Trump helped foreign markets outperform U.S. stocks during his first year in office

Trump has crowed about the gains in the U.S. stock market during his term, but in 2025 investors saw more opportunity in the rest of the world.

If you’re a stock market investor you might be feeling pretty good about how your portfolio of U.S. equities fared in the first year of President Trump’s term.

All the major market indices seemed to be firing on all cylinders, with the Standard & Poor’s 500 index gaining 17.9% through the full year.

But if you’re the type of investor who looks for things to regret, pay no attention to the rest of the world’s stock markets. That’s because overseas markets did better than the U.S. market in 2025 — a lot better. The MSCI World ex-USA index — that is, all the stock markets except the U.S. — gained more than 32% last year, nearly double the percentage gains of U.S. markets.

That’s a major departure from recent trends. Since 2013, the MSCI US index had bested the non-U.S. index every year except 2017 and 2022, sometimes by a wide margin — in 2024, for instance, the U.S. index gained 24.6%, while non-U.S. markets gained only 4.7%.

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The Trump trade is dead. Long live the anti-Trump trade.

— Katie Martin, Financial Times

Broken down into individual country markets (also by MSCI indices), in 2025 the U.S. ranked 21st out of 23 developed markets, with only New Zealand and Denmark doing worse. Leading the pack were Austria and Spain, with 86% gains, but superior records were turned in by Finland, Ireland and Hong Kong, with gains of 50% or more; and the Netherlands, Norway, Britain and Japan, with gains of 40% or more.

Investment analysts cite several factors to explain this trend. Judging by traditional metrics such as price/earnings multiples, the U.S. markets have been much more expensive than those in the rest of the world. Indeed, they’re historically expensive. The Standard & Poor’s 500 index traded in 2025 at about 23 times expected corporate earnings; the historical average is 18 times earnings.

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Investment managers also have become nervous about the concentration of market gains within the U.S. technology sector, especially in companies associated with artificial intelligence R&D. Fears that AI is an investment bubble that could take down the S&P’s highest fliers have investors looking elsewhere for returns.

But one factor recurs in almost all the market analyses tracking relative performance by U.S. and non-U.S. markets: Donald Trump.

Investors started 2025 with optimism about Trump’s influence on trading opportunities, given his apparent commitment to deregulation and his braggadocio about America’s dominant position in the world and his determination to preserve, even increase it.

That hasn’t been the case for months.

”The Trump trade is dead. Long live the anti-Trump trade,” Katie Martin of the Financial Times wrote this week. “Wherever you look in financial markets, you see signs that global investors are going out of their way to avoid Donald Trump’s America.”

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Two Trump policy initiatives are commonly cited by wary investment experts. One, of course, is Trump’s on-and-off tariffs, which have left investors with little ability to assess international trade flows. The Supreme Court’s invalidation of most Trump tariffs and the bellicosity of his response, which included the immediate imposition of new 10% tariffs across the board and the threat to increase them to 15%, have done nothing to settle investors’ nerves.

Then there’s Trump’s driving down the value of the dollar through his agitation for lower interest rates, among other policies. For overseas investors, a weaker dollar makes U.S. assets more expensive relative to the outside world.

It would be one thing if trade flows and the dollar’s value reflected economic conditions that investors could themselves parse in creating a picture of investment opportunities. That’s not the case just now. “The current uncertainty is entirely man-made (largely by one orange-hued man in particular) but could well continue at least until the US mid-term elections in November,” Sam Burns of Mill Street Research wrote on Dec. 29.

Trump hasn’t been shy about trumpeting U.S. stock market gains as emblems of his policy wisdom. “The stock market has set 53 all-time record highs since the election,” he said in his State of the Union address Tuesday. “Think of that, one year, boosting pensions, 401(k)s and retirement accounts for the millions and the millions of Americans.”

Trump asserted: “Since I took office, the typical 401(k) balance is up by at least $30,000. That’s a lot of money. … Because the stock market has done so well, setting all those records, your 401(k)s are way up.”

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Trump’s figure doesn’t conform to findings by retirement professionals such as the 401(k) overseers at Bank of America. They reported that the average account balance grew by only about $13,000 in 2025. I asked the White House for the source of Trump’s claim, but haven’t heard back.

Interpreting stock market returns as snapshots of the economy is a mug’s game. Despite that, at her recent appearance before a House committee, Atty. Gen. Pam Bondi tried to deflect questions about her handling of the Jeffrey Epstein records by crowing about it.

“The Dow is over 50,000 right now, she declared. “Americans’ 401(k)s and retirement savings are booming. That’s what we should be talking about.”

I predicted that the administration would use the Dow industrial average’s break above 50,000 to assert that “the overall economy is firing on all cylinders, thanks to his policies.” The Dow reached that mark on Feb. 6. But Feb. 11, the day of Bondi’s testimony, was the last day the index closed above 50,000. On Thursday, it closed at 49,499.50, or about 1.4% below its Feb. 10 peak close of 50,188.14.

To use a metric suggested by economist Justin Wolfers of the University of Michigan, if you invested $48,488 in the Dow on the day Trump took office last year, when the Dow closed at 48,448 points, you would have had $50,000 on Feb. 6. That’s a gain of about 3.2%. But if you had invested the same amount in the global stock market not including the U.S. (based on the MSCI World ex-USA index), on that same day you would have had nearly $60,000. That’s a gain of nearly 24%.

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Broader market indices tell essentially the same story. From Jan. 17, 2025, the last day before Trump’s inauguration, through Thursday’s close, the MSCI US stock index gained a cumulative 16.3%. But the world index minus the U.S. gained nearly 42%.

The gulf between U.S. and non-U.S. performance has continued into the current year. The S&P 500 has gained about 0.74% this year through Wednesday, while the MSCI World ex-USA index has gained about 8.9%. That’s “the best start for a calendar year for global stocks relative to the S&P 500 going back to at least 1996,” Morningstar reports.

It wouldn’t be unusual for the discrepancy between the U.S. and global markets to shrink or even reverse itself over the course of this year.

That’s what happened in 2017, when overseas markets as tracked by MSCI beat the U.S. by more than three percentage points, and 2022, when global markets lost money but U.S. markets underperformed the rest of the world by more than five percentage points.

Economic conditions change, and often the stock markets march to their own drummers. The one thing less likely to change is that Trump is set to remain president until Jan. 20, 2029. Make your investment bets accordingly.

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