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Why countries are in a race to build AI factories in the name of sovereign AI

Nvidia has earmarked $110 million to invest in "sovereign AI" startups, and many countries are investing in AI on their own.

The question becomes whether this discussion is a lot of thought leadership to enable a sales pitch, or whether nations truly need to embrace sovereign AI to be competitive with the rest of the world. Rather, they saw the need to invest in sovereign AI infrastructure to support economic growth and industrial innovation, said Colette Kress, CFO of Nvidia, in the earnings call. Kress also said Nvidia was working with the Indian government and its large tech companies like Infosys, Reliance and Tata to boost their “sovereign AI infrastructure.”

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