OpenAI pitches sovereign AI as countries weigh dependence and cost

OpenAI is offering governments a path to build national AI systems, a pitch that comes as countries try to reduce dependence on technology from the U.S. and China. Fortune reported that the company’s approach also asks countries to bring resources to the table, from large data center investments to data or local AI programs.

The issue was discussed at the Fortune ASEAN-GCC Economic Forum in Kuala Lumpur, where Fortune’s Jeremy Kahn reported that leaders from Southeast Asia and the Gulf showed strong interest in benefiting from AI while keeping control over key parts of the technology stack. According to Kahn, those concerns include data centers, data, AI models and applications.

Fortune reported that governments in the region are worried that large language models may reflect values and cultural norms that do not match their own. Kahn also wrote that some leaders are wary of pressure from Washington to align with either U.S. or Chinese AI systems, applications and infrastructure.

The cost of sovereignty

Malaysia’s Prime Minister Anwar Ibrahim has sought to keep Malaysia from choosing sides, according to Fortune. Kahn reported that Anwar has described China as an important neighbor while noting that the U.S. is Malaysia’s top investor and a major trading partner.

Kiril Evtimov, chief technology officer at the UAE AI company G42, told a Fortune panel that few countries can afford both their own AI models and the large data centers needed to train and run advanced systems. According to Fortune, Evtimov said many governments will need to decide which parts of the AI stack they can realistically own.

For some countries, Evtimov said, the practical option may be using open-source models for specific needs where they do not want to depend on Western technology vendors, such as government services. Fortune reported that he described that approach as likely the closest many countries will get to full technical sovereignty.

OpenAI’s country program

Jason Kwon, OpenAI’s chief strategy officer, discussed the company’s AI for Countries program at the same event, according to Fortune. The program is part of OpenAI’s Project Stargate effort to build large data centers around the world and is designed to pair the company with national governments.

OpenAI said in a blog post that the program will be built for each country’s language and culture and will respect future global standards. Fortune reported that OpenAI also says it will help invest in local AI startup ecosystems alongside local venture capital firms.

The first AI for Countries partner is the United Arab Emirates, according to OpenAI and Fortune. The UAE has agreed to invest billions of dollars in a 1-gigawatt Stargate data center in Abu Dhabi, with an initial 200-megawatt section expected to start operating next year.

Fortune reported that the UAE also agreed to put additional billions into U.S.-based Stargate data centers being created by OpenAI. G42, Oracle, Nvidia, Cisco and SoftBank are partners in the UAE project, according to Fortune.

In return, Fortune reported, the UAE is receiving help deploying OpenAI software across government and in sectors including energy, healthcare, education and transportation. Every UAE citizen will also receive free access to ChatGPT Plus, OpenAI’s paid subscription service, according to Fortune.

Money is not the only offer

Kwon told Fortune that AI for Countries would be “co-developed” with each partner because countries differ in needs, capacity and citizen requirements. Asked how less wealthy countries could participate, Kwon said contributions might include data that could help models better understand local languages and culture.

Kwon also told Fortune that governments could contribute through AI literacy, training, education efforts or by helping local businesses work with OpenAI. Fortune’s Kahn wrote that such arrangements could raise questions for governments and citizens about exchanging valuable or culturally sensitive data for access to advanced AI technology.

The core trade-off remains unresolved, according to Fortune’s account of the forum: countries want the strongest AI capabilities while also seeking control over the systems that may shape public services, industry and culture. OpenAI’s program gives governments one route, but Fortune reported that it may leave them dependent on a major U.S. technology provider.

This story draws on original reporting from Fortune.