Quick Answer : "Digital sovereignty" in AI isn't about where your servers are. It's about who can access your data while it's being processed. Most "sovereign AI" solutions just move the problem — your data still sits unencrypted in GPU memory, readable by any compromised hypervisor. Real sovereignty requires hardware-level isolation. Intel TDX enclaves on H200 GPUs cost $3.60/hr — 74% less than Azure's DIY alternative. The French government just blocked DeepSeek from government devices. Italy opened a GDPR investigation. The EU AI Act is live. Everyone's panicking about "digital sovereignty." But here's what nobody's asking: what happens to your data after it hits the GPU? I spent three days at a "sovereign AI" conference last month. Speaker after speaker talked about "European clouds" and "data residency." Not one mentioned that the data sits unencrypted in GPU memory during inference. Any admin with hypervisor access can read it. Any supply-chain compromise exfiltrates it. That's not sovereignty.…