Tech Sovereignty

The recent AI agreement between the United States and the United Arab Emirates, which paves the way for the UAE to establish one of the world's largest data campuses, has sparked heated debate in the US. The New York Times questioned whether President Donald Trump was “trading away America's tech future,” while Bloomberg warned that “offshoring AI to the Middle East could hand China a win.”

- SRI AUROBINDO

At the center of the deal is a commitment to sell the UAE 500,000 of Nvidia's most advanced semiconductors per year (for comparison, 200,000 chips reportedly are used to power Elon Musk's Colossus, believed to be the world's largest AI supercomputer). This is a clear win for the UAE, which aims to position itself as a tech leader. But the agreement also highlights a profound shift in global power dynamics: technological sovereignty is no longer a choice; it has become a strategic imperative.

The economic and geopolitical implications could be far-reaching. As countries compete for dominance in AI, semiconductors, and cloud infrastructure, the real challenge is to achieve technological autonomy without resorting to protectionist policies. That requires striking a delicate balance between international cooperation and addressing national-security risks.

The UAE's push for AI leadership is a prime example. To become a tech powerhouse, it needs to foster homegrown innovation while navigating an increasingly interdependent digital landscape.

As the race for technological supremacy intensifies, tech sovereignty has become a top priority for governments around the world. The ability to design, build, and maintain critical systems and production capacity independently is now essential to both economic competitiveness and national security, especially as global supply chains realign.

At its core, technological and manufacturing sovereignty is about maintaining control over the foundational tech stacks that underpin modern economies, from semiconductors to 5G networks. Relying on foreign chipmakers or cloud services can lead to delays, shortages, and strategic vulnerabilities. Consequently, economic competitiveness increasingly hinges on the strength of domestic innovation. For developing countries, in particular, bolstering local capacity is a prerequisite for job creation, value generation, and long-term resilience.