WGS 2026: 'Claim sovereignty and claim ownership' says Alibaba Chairman Joseph Tsai on the future of AI
Joseph Tsai, Chairman and Co-Founder of Alibaba, said at the World Governments Summit that for governments concerned with data privacy, open source allows them to "claim sovereignty and claim ownership of the model" by deploying it on their own secure infrastructure.
- Feb 4, 2026,
- Updated Feb 4, 2026 3:38 PM IST
At the World Governments Summit in Dubai, global tech leaders convened to discuss the trajectory of artificial intelligence, highlighting a pivotal shift towards open-source models and the emergence of "sovereign AI."
The discussion, moderated by Omar Sultan Alolama, featured Alibaba Chairman Joseph Tsai and Founder and Managing Partner of Social Capital, Chamath Palihapitiya, who both argued that the future of national productivity hinges on model transparency.
Palihapitiya expressed surprise at the rapid advancement of international AI, noting that "the Chinese open source models are just superb." He predicted that within the next three to five years, nations will be forced to make critical decisions regarding the "sovereignty of their own productivity and GDP."
According to Palihapitiya, "the future is open source" because it provides "total transparency into what’s happening underneath the hood."
Joseph Tsai echoed this sentiment, explaining that China's move toward open source was born out of a unique market history where software-as-a-service (SaaS) never fully matured. "The idea of users coming to an API to use an AI model and pay for it has never been a primary business model," Tsai remarked.
He emphasised that for governments concerned with data privacy, open source allows them to "claim sovereignty and claim ownership of the model" by deploying it on their own secure infrastructure.
"The idea of users coming to an API to use an AI model and pay for it has never been a primary business model," Tsai remarked. He emphasised that for governments concerned with data privacy, open source allows them to "claim sovereignty and claim ownership of the model" by deploying it on their own secure infrastructure.
The conversation also tackled the "AI bubble" debate. Palihapitiya suggested that current investments in energy and chips might be re-evaluated as AI discovers new materials.
He posited that a model could soon demonstrate chemistry for an "ultra high storage battery" or a "room temperature superconductor." "All of the things that we've used to underwrite productivity and GDP will get re-questioned," he warned.
Regarding advice for developing nations, the speakers urged a focus on practical applications rather than chasing "AI agents." Palihapitiya suggested prioritising education and public health to "cure some disease and make it easier to renew our driver's license." Tsai agreed, stating that while building a full-stack infrastructure is "a game for large economies," every government should start by identifying the "right application for AI" to ensure a "happy population."
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At the World Governments Summit in Dubai, global tech leaders convened to discuss the trajectory of artificial intelligence, highlighting a pivotal shift towards open-source models and the emergence of "sovereign AI."
The discussion, moderated by Omar Sultan Alolama, featured Alibaba Chairman Joseph Tsai and Founder and Managing Partner of Social Capital, Chamath Palihapitiya, who both argued that the future of national productivity hinges on model transparency.
Palihapitiya expressed surprise at the rapid advancement of international AI, noting that "the Chinese open source models are just superb." He predicted that within the next three to five years, nations will be forced to make critical decisions regarding the "sovereignty of their own productivity and GDP."
According to Palihapitiya, "the future is open source" because it provides "total transparency into what’s happening underneath the hood."
Joseph Tsai echoed this sentiment, explaining that China's move toward open source was born out of a unique market history where software-as-a-service (SaaS) never fully matured. "The idea of users coming to an API to use an AI model and pay for it has never been a primary business model," Tsai remarked.
He emphasised that for governments concerned with data privacy, open source allows them to "claim sovereignty and claim ownership of the model" by deploying it on their own secure infrastructure.
"The idea of users coming to an API to use an AI model and pay for it has never been a primary business model," Tsai remarked. He emphasised that for governments concerned with data privacy, open source allows them to "claim sovereignty and claim ownership of the model" by deploying it on their own secure infrastructure.
The conversation also tackled the "AI bubble" debate. Palihapitiya suggested that current investments in energy and chips might be re-evaluated as AI discovers new materials.
He posited that a model could soon demonstrate chemistry for an "ultra high storage battery" or a "room temperature superconductor." "All of the things that we've used to underwrite productivity and GDP will get re-questioned," he warned.
Regarding advice for developing nations, the speakers urged a focus on practical applications rather than chasing "AI agents." Palihapitiya suggested prioritising education and public health to "cure some disease and make it easier to renew our driver's license." Tsai agreed, stating that while building a full-stack infrastructure is "a game for large economies," every government should start by identifying the "right application for AI" to ensure a "happy population."
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine