Countries Are Spending Vast Sums on Their Own Independent AI Technologies – Could It Be a Major Misuse of Resources?

Internationally, states are investing hundreds of billions into the concept of “sovereign AI” – developing domestic AI models. Starting with the city-state of Singapore to Malaysia and Switzerland, nations are vying to create AI that comprehends regional dialects and cultural specifics.

The Worldwide AI Arms Race

This trend is an element in a wider international race dominated by major corporations from the United States and China. Whereas organizations like OpenAI and Meta pour substantial capital, middle powers are likewise making sovereign gambles in the AI landscape.

However with such huge amounts at stake, is it possible for developing countries achieve significant advantages? As noted by an expert from an influential research institute, If not you’re a wealthy government or a big corporation, it’s quite a burden to create an LLM from the ground up.”

National Security Concerns

Numerous states are unwilling to use external AI systems. In India, as an example, American-made AI tools have at times been insufficient. An illustrative example featured an AI tool deployed to instruct students in a distant area – it spoke in the English language with a thick US accent that was hard to understand for regional students.

Furthermore there’s the defence dimension. In the Indian security agencies, relying on certain international AI tools is seen as inadmissible. Per an founder noted, It's possible it contains some arbitrary learning material that could claim that, such as, a certain region is not part of India … Using that specific model in a defence setup is a big no-no.”

He continued, I’ve discussed with individuals who are in security. They aim to use AI, but, setting aside particular tools, they are reluctant to rely on American platforms because data might go overseas, and that is totally inappropriate with them.”

National Initiatives

In response, several countries are backing national projects. One such effort is underway in the Indian market, wherein a company is striving to build a sovereign LLM with government backing. This project has committed approximately 1.25 billion dollars to AI development.

The expert imagines a system that is more compact than premier models from Western and Eastern corporations. He states that the nation will have to compensate for the funding gap with skill. Based in India, we do not possess the option of pouring billions of dollars into it,” he says. “How do we vie with say the $100 or $300 or $500bn that the US is pumping in? I think that is the point at which the fundamental knowledge and the brain game plays a role.”

Local Priority

In Singapore, a public project is funding language models educated in the region's local dialects. These particular tongues – including the Malay language, Thai, Lao, Indonesian, the Khmer language and additional ones – are commonly underrepresented in American and Asian LLMs.

It is my desire that the individuals who are building these national AI tools were aware of just how far and just how fast the leading edge is advancing.

A leader participating in the program explains that these systems are created to enhance bigger AI, rather than replacing them. Systems such as a popular AI tool and another major AI system, he states, commonly struggle with local dialects and cultural aspects – speaking in stilted Khmer, as an example, or recommending meat-containing recipes to Malaysian consumers.

Developing local-language LLMs enables national authorities to include cultural sensitivity – and at least be “smart consumers” of a advanced system developed overseas.

He continues, “I’m very careful with the concept sovereign. I think what we’re trying to say is we want to be better represented and we aim to understand the capabilities” of AI systems.

Multinational Partnership

For states seeking to establish a position in an growing international arena, there’s an alternative: team up. Analysts associated with a well-known university have suggested a public AI company shared among a alliance of developing countries.

They refer to the project “a collaborative AI effort”, modeled after the European successful strategy to develop a alternative to a major aerospace firm in the 1960s. The plan would see the formation of a government-supported AI organization that would merge the resources of different countries’ AI initiatives – such as the UK, Spain, the Canadian government, the Federal Republic of Germany, the nation of Japan, the Republic of Singapore, the Republic of Korea, France, the Swiss Confederation and the Kingdom of Sweden – to create a viable alternative to the US and Chinese giants.

The primary researcher of a paper setting out the proposal notes that the idea has gained the consideration of AI officials of at least several nations up to now, along with several national AI companies. While it is now focused on “mid-sized nations”, emerging economies – the nation of Mongolia and Rwanda for example – have likewise shown curiosity.

He comments, In today’s climate, I think it’s simply reality there’s reduced confidence in the assurances of the existing American government. People are asking such as, should we trust these technologies? What if they opt to

Justin Richardson
Justin Richardson

A historian and travel writer passionate about Italian heritage and festival culture.

August 2025 Blog Roll
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