Let us know about free updates
The author is a fellow at Stanford University’s Human-Centered Artificial Intelligence Institute and the Centre for Cyber Policy. She is the author of “The Tech Coup.”
Openai has a new pitch in the World Government. Buy AI with Democrat Rails through the Openai for Country initiative. This project is both sensible politics and lucrative business opportunities. The company owns every layer of Tech Stack, from data centers to foundation models to user interfaces. Elon Musk even tried to steer his AI company Xai into a contract, valuing his interests.
Beyond marketing, what does it mean for a country to build AI on democratic rails? Openai states in its blog that democratic AI “means the development, use and deployment of AI that protects and incorporates long-standing democratic principles.” This package outlines how governments can prevent AI from using AI to “accumulate control.” Framing is taking advantage of the competition between the US and China for the domination of technology. This is a prominent issue on both sides of the aisle of the council.
However, the Open signed its first contract in May under a new initiative with the United Arab Emirates. Freedom House ranks the United Arab Emirates as “not free” with a dark score of 18/100. The US State Department documents serious human rights violations, including detention of political prisoners and extensive censorship. It is difficult to imagine how openness could build a “democratic rail” of technology in countries that are hostile to free expression.
Openai is also committed to supporting data sovereignty and to grant governments legal jurisdiction over data created in their country through the development of local data centres. Sovereignty is a sensitive point for governments, especially given US cloud law. Since 2018, the federal law enforcement agency has been responsible for the authority to enforce data stored on servers, including third countries, via warrants or subpoenas on American high-tech companies. It is unclear how Openai can promise sovereignty in light of this law, especially as the company explicitly says it will “work closely with the US government.”
Countries signing one of Openai’s all-inclusive deals will probably get more than they negotiated: their AI infrastructure includes important backdoors that allow US access to their sensitive data and undermine their digital sovereignty.
As US tech companies become a tool for American foreign policy, European allies are on alert. This recently appeared at the International Criminal Court. ICC chief prosecutor Karim Khan is reportedly losing access to his Microsoft email address after Donald Trump imposed sanctions in February. These threaten anyone, institution or company with fines and prison time if Khan provides “financial, material or technical support.”
In March, Ukrainian officials lost access to satellite images from American company Maxar. Imagine how much leverage the US could have in negotiations if it had the power to turn off the AI capabilities of the country.
The timing of Openai’s global expansion is more opportunistic than principles. Market volatility and growth in inexpensive AI services have made investors cautious about investing in Stargate, an ambitious Openai-led $500 million infrastructure project. Foreign government courtship provides new revenue streams while advancing US geopolitical interests. The initiative will expand the US AI infrastructure globally, with the promise of “hunds of thousands of American jobs.” This is advantageous for both the economic and strategic interests of the countries that may at the expense of their partner countries.
The actions of the Trump administration over the past few months have shown how easy it is to buy American loyalty. The government should see companies draping their products with a highly skeptical democratic flag. When Washington decides to weaponise access to technology, partner countries discover that “sovereign” infrastructure is nothing. By welcoming “Openai for the Country,” the government loses its expertise and capabilities at home, and then structurally relying on US technology, and ultimately bound by presidential policy priorities.
Openai will benefit spectacularly from the project, but the US government actually benefits the most. The amount of democracy and sovereignty laundering will not change basic reality. This initiative will first serve America’s commercial and strategic interests.
