Experts are urging nations to rethink the pursuit of total AI sovereignty in favor of a model called "smart interdependence" [1].
This shift in strategy matters because the cost of building entirely self-sufficient AI ecosystems is becoming impractical for most countries [2]. As nations race to secure digital autonomy, the financial and technical burdens of creating domestic hardware and software stacks from scratch may outweigh the benefits [2].
Srikanth Velamakanni, co-founder of Fractal Analytics, said these dynamics during a segment with hosts Menaka Doshi and Haslinda Amin [1]. Velamakanni said that true sovereignty does not require a country to own every part of the AI value chain. Instead, he said that nations should focus on creating digital leverage through strategic partnerships [3].
Full self-sufficiency is often viewed as an unattainable goal for many governments due to the specialized infrastructure and talent required [2]. By moving toward interdependence, countries can share resources and technical breakthroughs, while still maintaining control over their specific national interests [3].
This approach allows states to avoid the trap of costly isolationism in the tech sector. Rather than attempting to replicate the entire AI stack, countries can integrate global tools while developing localized expertise to ensure they are not overly dependent on a single foreign provider [3].
“Smart interdependence may be more valuable than full self-sufficiency in AI.”
The transition from 'AI sovereignty' as isolationism to 'smart interdependence' signals a pragmatic shift in global geopolitics. It suggests that the next era of technological competition will be defined not by who can build a closed system, but by who can best manage a network of strategic alliances to maintain autonomy without incurring the prohibitive costs of total independence.



