‘Sovereign AI’ Takes Off as Countries Seek to Avoid Overreliance on Superpowers

Worldwide AI spending is projected to reach $1.5 trillion this year, a roughly 50% increase from 2024, and exceed $2 trillion next year.

As China and the U.S. race to dominate artificial intelligence, countries are increasingly wary of becoming overly dependent on the superpowers for a technology that could profoundly affect their economic competitiveness and national security. In response, a select few are seeking to build out their own AI capabilities and become leaders alongside the U.S. and China. Countries also hope to build more resilience by having domestic AI capabilities and alternative service providers to turn to in case of potential disruptions, said Courtney Lang, who focuses on cybersecurity at the Information Technology Industry Council, a Washington, D.C.-based trade group.

Many countries have efforts in motion. France’s Mistral AI and Germany’s SAP have teamed up to launch a sovereign AI platform to protect European data in the public sector and regulated industries. The U.K. has set up a sovereign AI unit to facilitate investments into local startups and to become a more attractive location for AI firms. India is developing its own foundational AI model and expanding domestic computing capacity. Saudi Arabia and the United Arab Emirates, which are among the most active and richest Middle East players in AI, recently won approval from the U.S. Commerce Department for two local companies to buy up to 70,000 advanced AI chips. The U.A.E.’s minister of economy has likened spending on sovereign AI to spending on areas like defense and cybersecurity.