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What is the story about?
Artificial Intelligence (AI) is no longer just a technology race between companies — it is fast becoming a geopolitical contest between nations.
Hemant Mohapatra, Partner at Lightspeed Venture Partners, believes AI will shape the next era of global power in the same way oil, minerals, water, and energy have done in the past. And the countries that manage to control key parts of the AI supply chain will ultimately determine who leads the future.
Speaking on India’s position in the global AI landscape, Mohapatra laid out a stark reality: AI is being treated as a national resource, and every major nation wants sovereignty over it.
AI is the new “natural resource”
Mohapatra argues that AI is increasingly being viewed not merely as software innovation but as a strategic asset.
“AI is now being treated almost like a national resource,” he said.
Just as nations seek control over energy reserves or rare minerals, governments now want influence over the building blocks of AI.
But not every country will be able to compete.
“Not all countries will have the capability… just like not every country has a space station or has been able to go to the moon.”
The implication is clear: AI leadership will be limited to a few powerful blocs.
The AI supply chain is fragmenting
One of Mohapatra’s key points is that the global AI ecosystem is breaking into national and regional silos.
The AI stack begins at the deepest hardware layer:
“What we are seeing globally is that the supply chain of AI is fragmenting from the very bottom,” Mohapatra said.
The fragmentation is strongest at the chip and hardware level, while the upper layers — models and applications — remain more globally competitive.
Europe, China, and the US are building AI “islands”
Mohapatra highlighted how major regions are trying to create independent AI ecosystems.
Europe is pushing homegrown alternatives such as Mistral, signaling a desire to reduce dependence on the US.
China is already operating as a separate AI island due to restrictions and domestic development.
The US is attempting to dominate every layer — from chips to models to platforms.
“China, obviously, is its own island. The US is starting to really control all the layers at the same time.”
India is also moving toward AI sovereignty
Mohapatra believes India is now part of this same race for control.
“The conclusion you will draw is that we should control some, if not all, of it.”
India’s strategy, however, will not mirror the US or China immediately — especially in advanced chipmaking.
Instead, India’s leverage lies in three areas:
1. Data control
India has a massive advantage in local datasets and population-scale digital infrastructure.
“We are exerting a lot more control… on the data that sits on top of the models.”
2. Foundation models
India is beginning to invest in domestic AI model-building.
Mohapatra pointed to Lightspeed’s investment in Sarvam, one of India’s emerging foundation model companies.
3. Semiconductor manufacturing and packaging
While India may not build the next Nvidia overnight, it can still compete in parts of the chip ecosystem.
“We are not at the point where we can build an Nvidia or an Intel equivalent, but we can certainly do local manufacturing, local packaging, and hopefully global selling.”
Also Read | Young Turks Reloaded | India’s IPO boom is just getting started, says Lightspeed as startup bets shift to 2026
So, who will control the future of AI?
Mohapatra’s answer is straightforward:
AI, in this view, is no longer just about innovation — it is about sovereignty.
The future of AI will not be controlled by a single company, but by the countries that can command the full stack — from silicon to software.
India’s AI moment is still ahead
Despite fears that India may have missed the AI wave, Mohapatra suggests the opposite: the race is just beginning, and fragmentation means new opportunities.
India may not dominate every layer yet, but it can build strategic control where it matters most — data, local models, and manufacturing depth.
In the coming decade, AI will define global leadership — and the countries that treat it like a national resource will shape the world order.
Hemant Mohapatra, Partner at Lightspeed Venture Partners, believes AI will shape the next era of global power in the same way oil, minerals, water, and energy have done in the past. And the countries that manage to control key parts of the AI supply chain will ultimately determine who leads the future.
Speaking on India’s position in the global AI landscape, Mohapatra laid out a stark reality: AI is being treated as a national resource, and every major nation wants sovereignty over it.
AI is the new “natural resource”
Mohapatra argues that AI is increasingly being viewed not merely as software innovation but as a strategic asset.
“AI is now being treated almost like a national resource,” he said.
Just as nations seek control over energy reserves or rare minerals, governments now want influence over the building blocks of AI.
But not every country will be able to compete.
“Not all countries will have the capability… just like not every country has a space station or has been able to go to the moon.”
The implication is clear: AI leadership will be limited to a few powerful blocs.
The AI supply chain is fragmenting
One of Mohapatra’s key points is that the global AI ecosystem is breaking into national and regional silos.
The AI stack begins at the deepest hardware layer:
- ASML and advanced chip-making tools
- Nvidia, AMD, Intel and semiconductor dominance
- Foundation models and infrastructure
- Data layers and applications
“What we are seeing globally is that the supply chain of AI is fragmenting from the very bottom,” Mohapatra said.
The fragmentation is strongest at the chip and hardware level, while the upper layers — models and applications — remain more globally competitive.
Europe, China, and the US are building AI “islands”
Mohapatra highlighted how major regions are trying to create independent AI ecosystems.
Europe is pushing homegrown alternatives such as Mistral, signaling a desire to reduce dependence on the US.
China is already operating as a separate AI island due to restrictions and domestic development.
The US is attempting to dominate every layer — from chips to models to platforms.
“China, obviously, is its own island. The US is starting to really control all the layers at the same time.”
India is also moving toward AI sovereignty
Mohapatra believes India is now part of this same race for control.
“The conclusion you will draw is that we should control some, if not all, of it.”
India’s strategy, however, will not mirror the US or China immediately — especially in advanced chipmaking.
Instead, India’s leverage lies in three areas:
1. Data control
India has a massive advantage in local datasets and population-scale digital infrastructure.
“We are exerting a lot more control… on the data that sits on top of the models.”
2. Foundation models
India is beginning to invest in domestic AI model-building.
Mohapatra pointed to Lightspeed’s investment in Sarvam, one of India’s emerging foundation model companies.
3. Semiconductor manufacturing and packaging
While India may not build the next Nvidia overnight, it can still compete in parts of the chip ecosystem.
“We are not at the point where we can build an Nvidia or an Intel equivalent, but we can certainly do local manufacturing, local packaging, and hopefully global selling.”
Also Read | Young Turks Reloaded | India’s IPO boom is just getting started, says Lightspeed as startup bets shift to 2026
So, who will control the future of AI?
Mohapatra’s answer is straightforward:
- The nations that control the AI supply chain
- The countries that protect and govern their data
- The regions that build domestic models and infrastructure
- The powers that secure chip ecosystems
AI, in this view, is no longer just about innovation — it is about sovereignty.
The future of AI will not be controlled by a single company, but by the countries that can command the full stack — from silicon to software.
India’s AI moment is still ahead
Despite fears that India may have missed the AI wave, Mohapatra suggests the opposite: the race is just beginning, and fragmentation means new opportunities.
India may not dominate every layer yet, but it can build strategic control where it matters most — data, local models, and manufacturing depth.
In the coming decade, AI will define global leadership — and the countries that treat it like a national resource will shape the world order.
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