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Sovereign AI explained: An AI cloud CEO unpacks what's behind the trend
- Vultr, a cloud service provider founded in 2014, explains Sovereign cloud as delivery of cloud infrastructure with data stored locally in a country to ensure compliance with local privacy laws, data residency and data governance.
- Sovereign AI is a term used for government-sponsored capacity-building in AI infrastructure supported by the government at state or federal level.
- AI computations being extremely energy-intensive results in data centers being built in global markets that have a comparative advantage in supporting lower-cost data center capacity.
- National security, critical industries and citizen data require local laws around consumer data and privacy that may differ in other countries and are vital for the governments to ensure compliance.
- Low compliance risk is affiliated with keeping data in a country and in sovereign clouds that enables the highest levels of accountability and avoids transferring data across international networks.
- Uneven global distribution of AI infrastructure halts countries from having access to their desired technology which results in them realizing the significance of taking an active role in sponsoring capacity building, incentivizing deployment and encouraging infrastructure locally.
- Singtel in Singapore is now bringing up massive capacity in globally comparative low-cost energy markets including Malaysia for efficient service provision across the region.
- AI language models are specific to a language and every major language economy in the world wants to benefit from AI that is not available proportionate to the world's population or GDP.
- AI is critical for national security and different critical industries, thereby being crucial for countries to ensure that they can execute anything related to AI within their country.
- Many enterprises don't care about where the data centers are, so long as the execution is done with world-class trust commitments, compliance, and privacy.
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