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This research aims to identify the primary cost drivers of sovereign AI and how they can be modeled over time.

July 14, 20260 citationsOpen Access

What determines the cost of sovereign AI? A TCO framework with no sticker price

Key Points

This research aims to identify the primary cost drivers of sovereign AI and how they can be modeled over time.
Modeling includes five key drivers: hardware capacity, utilization, operations, model maintenance, and risk avoided.
A multi-year horizon is analyzed to explore cost implications of owned capacity versus metered cloud pricing.
Cost modeling reveals significant impact of hardware capacity on overall expenses.
Utilization rates and operational efficiency are critical in managing total cost of ownership.
Risk mitigation measures vary costs considerably, emphasizing preventive strategies.

Abstract

The cost of sovereign AI is set by five drivers you can model: hardware capacity, utilisation, operations, model maintenance and risk avoided. Over a multi-year horizon owned capacity changes the shape of the bill compared with metered cloud tokens, so cost is modelled, not quoted.Originally published at https://mickai.co.uk/articles/what-determines-the-cost-of-sovereign-ai. Mickai is a Sovereign Intelligence Operating System; the Open Audit Record signs every artificial intelligence action before it executes, post-quantum and offline-verifiable. 104 filed UK patent applications, Mickai LTD (Companies House 17166618).

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