AI Sovereignty is Your Alpha: How to Avoid Transferring Your Alpha to a Hosted Model Provider

Use of third party AI model services poses significant risk to your alpha. Without sovereign control over how your data is processed by those services (either the AI Labs or the Hyperscalers, collectively referred to as “Hosted Model Providers”), Hosted Model Providers may extract your alpha (your unique institutional knowledge and tradecraft embodied in data exposed to and generated from your use of AI models) and resell it to the broader market in the form of weights or services. Storage of your data by Hosted Model Providers also increases the attack surface against your alpha in an increas