Sovereign AI: Why Nations Are Building Their Own Models

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What happens when AI stops being just infrastructure - and becomes a matter of national identity and global power?

In this episode, a16z’s Anjney Midha and Guido Appenzeller explore the rise of sovereign AI - the idea that countries must deploy AI capabilities that align with their national values.

From Saudi Arabia’s $100B+ AI ambitions to the cultural stakes of model alignment, we examine:

Why nations are building local “AI factories”
How foundation models are becoming instruments of soft power
What the DeepSeek release tells us about China’s AI strategy
Whether the world needs a “Marshall Plan for AI”
And how open-source models could reshape the balance of power

AI isn’t just a technology anymore—it’s cultural infrastructure. This conversation maps the new battleground.

Timecodes:
00:00 Sovereign AI
00:37 The Rise of Local AI Platforms
03:09 AI Factories vs. Data Centers
05:44 Cultural Implications of AI
08:57 Global AI Leadership and Strategy
11:59 The Role of Government in AI Development
15:31 Conclusion: Foundation Model Diplomacy

Resources:
Find Anj on X: https://x.com/AnjneyMidha
Find Guido on X: https://x.com/appenz

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