THE AI FACTORY INFLECTION

 WHAT IF EVERY VEHICLE ON EARTH CAME FROM A SINGLE FACTORY?

Imagine every car — every brand, every model, every purpose-built machine — manufactured in one facility, controlled by one entity.

Unthinkable.

No industry, no institution would allow it. Yet that is exactly the world we have built for AI. Nearly every advanced AI chip powering global intelligence is produced by a single manufacturer — TSMC.

One supply line.
One point of failure.

This is not just a supply chain issue. This is a sovereignty issue. The foundation of institutional independence now sits in someone else’s factory.

THE GREAT REWIRING — AND THE HIDDEN RISK

Every major institution on the planet is being rewired for AI: Government. Finance. Healthcare. Defense. Energy. Education.

The shift is inevitable. It’s already underway...There is no “pause button” coming.

But here’s the part that isn’t being said out loud: Most institutions are rewiring themselves to be controlled by AI providers — not to control AI themselves.

They are:

- Renting compute
- Outsourcing models
- Blindly trusting black-box reasoning
- Operating without auditability or oversight

This is the most consequential strategic error of the decade. You cannot modernize the core intelligence of institutions without owning the means to govern it.

SOVEREIGNTY VS. DEPENDENCE — THERE IS NO THIRD OPTION

In the next ten years, institutions will divide into two groups:

1. Those who control their intelligence infrastructure end-to-end:
Power → Compute → Data Centers → Models → Agentic AI.

2. Those who operate at the permission of those who do.

One group will make decisions. The other will receive them.
One group will shape the future. The other will inherit it.

Either an institution commands its intelligence — or it is commanded by whoever runs its intelligence.

HISTORY IS VERY CLEAR ON THIS

Institutions don’t lose independence in a single moment. They lose it:

- One outsourced capability at a time
- One dependency that becomes permanent
- One crisis where someone else holds the controls

Collapse comes slowly. Regret arrives suddenly. And by then, it’s not reversible.

RETURN TO THE FACTORY

So ask the question again:

What if every vehicle on Earth came from one factory?

You would never accept that dependency for transportation — yet institutions accept it today for something far more critical: intelligence.

The automotive world solved this decades ago — distributed supply chains, diversified manufacturing, sovereign capability.

AI is just now arriving at the same realization. The question is not whether institutions will learn this lesson — but whether they will learn it in time.
Because once you rely on someone else’s factory, someone else’s chips, someone else’s models…

You are no longer steering. You are simply being taken somewhere. 

  — Rad H. Pasovschi, CEO, Institutional AI