According to a Bernstein report, India must build its own sovereign large language models (LLMs) to avoid becoming permanently dependent on foreign artificial intelligence (AI). The brokerage warns that owning AI applications alone is insufficient, arguing that India needs to control the foundational intelligence layer to remain globally competitive. The report compares today's AI race to defence technology, where access to advanced capabilities is tightly controlled, and notes recent US curbs on frontier AI models demonstrate that cutting-edge AI is increasingly treated as a strategic national asset. Bernstein warns that India could find itself locked out of the latest AI models during geopolitical tensions, leaving domestic companies dependent on older technologies while competitors in the US and China advance. The report describes AI as the next "fighter jet"—a strategic capability nations are unwilling to share without restrictions. It cautions that relying entirely on foreign LLMs exposes India to long-term strategic risks, as restricted or delayed access could force Indian businesses to build products on older-generation AI systems. Bernstein also questions whether India's successful IT services model can be replicated in artificial intelligence, arguing that AI shifts value creation towards ownership of foundational models.