The AI economy is being constrained by the physical world: The Iran war threatens to squeeze the industrial inputs that chip manufacturers depend on, the latest confirmation that once-reliable global chokepoints are now more fragile than ever.

Why it matters: It is part of a growing pattern defining the economic conditions of the 2020s: shocks exposing the fragility of supply chains that the world took for granted.

The AI buildout is the latest to be throttled by this trend — in this case, the effects of an uncertain Middle East conflict and the Strait of Hormuz's effective closure.

What they're saying: "Hyperscalers are committing roughly $650 billion to U.S. AI infrastructure this year alone.…