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Emerging economies are increasingly looking to build “sovereign AI” systems—nationally controlled artificial intelligence infrastructures that reflect their own languages, cultures, and strategic priorities. At CNBC’s East Tech West 2025 conference held in Bangkok, Thailand, industry leaders emphasized that open-source AI models and access to scalable cloud computing are key to making that vision a reality.

What Is Sovereign AI—and Why It Matters

Sovereign AI refers to a country’s ability to independently develop and govern its AI technologies, data infrastructure, and computational resources. As generative AI becomes a global economic driver, countries are aiming to ensure they’re not overly dependent on foreign-owned platforms—particularly those built on Western languages and values.

“There’s a strategic urgency here,” said Kasima Tharnpipitchai, head of AI strategy at SCB 10X, the tech investment arm of Thailand-based SCBX Group. “Most large language models today—from OpenAI’s GPT to Anthropic’s Claude—are deeply rooted in English and Western norms. But the way we think, speak, and express ourselves in Thai, Vietnamese, or Bahasa Indonesia is fundamentally different.”

He argued that relying on translated outputs from English-first models won’t meet regional needs. For countries to truly benefit, they must develop AI that is linguistically and culturally native.

ASEAN's Demographic Edge

Southeast Asia, with nearly 700 million people and an internet penetration rate growing by 125,000 new users daily, is fertile ground for AI innovation. Roughly 61% of the region’s population is under 35—creating a digital-first generation that’s well-positioned to contribute to the development of sovereign AI solutions.

Jeff Johnson, Managing Director for ASEAN at Amazon Web Services (AWS), said the region has an enormous opportunity to leap ahead in AI adoption. “We’re very focused on how to democratize AI through access to the cloud. That means empowering developers, startups, and governments alike with scalable, affordable tools,” Johnson explained.

Open-Source AI: A Catalyst for National Innovation

One of the central tools driving this shift is open-source AI. These are models and tools whose underlying code is freely accessible, modifiable, and redistributable. Such openness creates opportunities for countries to build systems tailored to their own needs, without the high cost or regulatory restrictions associated with closed-source alternatives.

“There’s world-class AI talent in Thailand and Southeast Asia,” said SCB 10X’s Tharnpipitchai. “If we don’t open up our AI ecosystems, we’re limiting that talent’s ability to make a national impact.”

China’s rapid growth in AI adoption is a testament to open-source power. Experts have told CNBC that models like Baichuan, InternLM, and DeepSeek—often labeled as open-source—have helped the country scale its AI ecosystem and reduce reliance on U.S. firms.

Meta’s LLaMA and models from Hugging Face and Mistral are also notable contributors to this expanding open-source landscape, providing accessible alternatives to closed systems like OpenAI’s GPT or Google’s Gemini.

Databricks’ Cecily Ng, VP for ASEAN & Greater China, added that these open frameworks enable governments and companies to “avoid over-dependence on a few proprietary players and instead tailor their AI to local sectors like agriculture, fintech, and healthcare.”

Infrastructure Matters: The Role of Cloud in Sovereign AI

While open-source code provides flexibility, access to computing power is what enables action. Traditionally, the high cost of data centers and AI chips created major roadblocks. Now, cloud computing is leveling the playing field.

Prem Pavan, Southeast Asia & Korea VP at Red Hat, noted that sovereign AI used to focus mostly on language localization. “But in 2025, local computing infrastructure—who owns the data centers, who controls the GPUs—matters just as much,” he said.

Major global cloud providers like AWS, Microsoft Azure, and Tencent Cloud offer robust services in the region, while local players such as AIS Cloud and True IDC provide sovereign cloud solutions for governments and regulated industries.

AWS’s Johnson emphasized the pay-as-you-go model as a critical enabler: “It lowers the barrier to entry, letting a small startup or a government agency prototype, scale, and launch without massive upfront investment.”

Global Perspective: The Race for Inclusive AI

A recent report by the United Nations Conference on Trade and Development (UNCTAD) forecasts that the global AI market will reach $4.8 trillion by 2033. However, it warns of deepening divides—where the benefits of AI remain concentrated in wealthier nations and tech hubs.

To mitigate this, UNCTAD recommends expanding shared AI infrastructure, embracing open-source collaboration, and increasing investment in education and cross-border knowledge exchange.

If countries follow through, they could close the digital divide and ensure AI technologies serve local priorities—from education and language preservation to health diagnostics and climate adaptation.

Final Thoughts

The future of AI will not be decided solely in Silicon Valley. From Bangkok to Jakarta and Manila, nations are now shaping their own AI paths, rooted in regional needs and powered by open-source models and cloud infrastructure.

As global conversations shift from innovation to inclusion, sovereign AI is no longer just a political ambition—it’s an economic and technological necessity.