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Australia is strategically positioning itself as an AI "middle power" by simultaneously pursuing alignment with superpowers, leveraging value chains, developing distinct capabilities, and building sovereign infrastructure. The nation's security and economic future hinges on its ability to transition from data dependency to hosting frontier models and talent within its borders. This shift represents a critical pivot for regional geopolitics as Australia seeks to define its role in the global AI ecosystem beyond mere consumption.
Australia as an AI Middle Power
Australia’s role in the frontier world of artificial intelligence was the focus in Canberra last month, with two events bringing together hundreds of defense, diplomacy, development, and industry experts. The Australian Strategic Policy Institute (ASPI) gathered the national security and defense community for an AI Masterclass on September 14. The next day, the Development Intelligence Lab’s Situation 2026 explored how AI can solve Indo-Pacific development challenges. The events revealed a country grappling with what it means to be a middle power in…
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