Nations Race to Build Their Own AI as 3 Major Economies Move to Cut Foreign Tech Ties

Japan's Sakana AI has announced plans to build a homegrown artificial intelligence model tailored to the country's language and culture, aiming to cut reliance on technology from the United States and China [1]. The company did not disclose a timeline or budget for the project, but the effort reflects a broader push for national self-sufficiency in critical technology [1].

The move comes as governments increasingly prioritize what analysts call "intelligence sovereignty"—a nation's capacity to develop, own, and govern AI technology independently [2]. Countries that depend on foreign AI systems risk losing control over their data, infrastructure, and economic future, according to proponents of the approach [2]. Nations that fail to build these capabilities may fall behind in the global economy [2].

Türkiye has taken a similar step, presenting a Digital Sovereignty Strategy to its Cybersecurity Board [3]. The plan aims to strengthen the country's control over its digital infrastructure and reduce reliance on foreign technology while boosting domestic innovation and production in the digital sector [3].

In Southeast Asia, Indonesia's sovereign wealth fund Danantara announced it will focus investments on three strategic sectors by 2027: critical minerals, industrial downstreaming, and artificial intelligence [4]. The fund signaled the plan will strengthen Indonesia's position in industries tied to the global energy transition and advanced technology [4].

The push for technological self-reliance extends beyond AI models. In South Korea, Chinese humanoid robot makers are moving past showroom displays into factory trials and commercial use as Seoul increases investment in physical artificial intelligence—robots that can sense and act in the real world [5]. Companies including Hong Kong-listed UBTech Robotics and Shanghai-based firms are joining the effort [5].

Meanwhile, China's embodied AI industry is creating new jobs for workers who train robots to perform tasks, illustrating how the technology is reshaping labor markets [6].

The global race for AI dominance has also prompted debate in Washington. A former top CIA official argued that the United States should spy on foreign companies to help American firms stay ahead in the technology competition [7]. David Cohen, who served as deputy director of the Central Intelligence Agency under Presidents Barack Obama and Joe Biden, wrote that "the US lead in many crucial advanced technologies is being contested or even erased by China" [7].