| Sector | Posture | Friction |
|---|---|---|
| Frontier Labs | Restricted | High Compliance |
| Defense Primes | Subsidized | Favored Access |
| Open-Source AI | Permitted w/ Limits | Severe Licensing |
| Sovereign State | Board Oversight | Active Audit |
Sovereign AI Governance Assessment Brief
Scenario Analysis: Karp Balanced Oversight Protocol
Under this configuration (45% nationalization baseline, 70% regulatory strictness, 50% infrastructure state-control, and 80% private sector cooperation), the sovereign state achieves a State Control Index of 56.5%. This delivers a High national security mitigation rating while imposing 64.2%pt market friction. Venture capital valuations contract by an estimated -18.4% due to sovereign oversight clauses, but enterprise defense integration remains robust through mutual public-private compacts.