Trend Trend 10: national AI strategies fragment the global market into regional ecosystems

Summary

The tenth trend in CB Insights' outlook is that sovereign AI is splitting the global market into regional ecosystems. Countries are building their own computing infrastructure, models and talent rather than relying on a few global providers. Concerns about access to compute, chip supply and data sovereignty drive governments to fund multibillion-dollar national programmes. Nvidia's sovereign AI revenue is expected to more than double in 2025, and government chip purchases show the shift toward localised compute. Regional model developers are turning local data residency and compliance into a selling point. CB Insights expects capital to increasingly flow toward regional AI champions as governments back domestic ecosystems.