Here's a telecom story that doesn't sound like a telecom story. VEON Ltd. (VEON) is trying to turn something called "sovereign AI" from a policy buzzword into a real profit engine. And according to its CEO, it's working.
In an exclusive interview, VEON CEO Kaan Terzioglu laid out the company's bet: building locally tailored AI models for five frontier economies—Pakistan, Bangladesh, Ukraine, Kazakhstan, and Uzbekistan. The idea is that global tech giants, the so-called hyperscalers, aren't prioritizing these markets. They're not building AI that speaks the local languages or understands the cultural context. That leaves a gap. And VEON is rushing to fill it.
"VEON is not a traditional telco," Terzioglu said. "We are a digital services company that happens to provide connectivity." He describes AI not as a separate business unit, but as a "horizontal capability" woven into everything the company does—fintech, education, healthcare, entertainment, and enterprise services.
This isn't just theoretical. The numbers suggest the integration is paying off. VEON's digital revenues climbed to $759 million in 2025, making up 17.3% of total group revenue, with strong momentum reported into the fourth quarter. More strikingly, the company's digital ecosystem now has 205 million active users, which is more than its 150 million connectivity customers. The digital tail is starting to wag the dog.
On the ground, AI is already embedded in products people are using. In Pakistan, an AI assistant inside the company's Simosa super-app serves over one million monthly users. Across its markets, AI powers customer-facing tools like tutoring apps, healthcare assistants, and even farmer coaching services—real products that, according to the company, are generating measurable revenue uplift.
Terzioglu is emphatic about the strategic imperative. "Sovereign AI is not an option; it is non-negotiable, a raison d'être," he said. "Local languages and cultural context are simply not a priority for hyperscalers. These markets are underserved by global AI models. If we don't build for them, no one will."
To build these national AI ecosystems without getting bogged down in massive infrastructure spending, VEON is taking a partnership approach. It's working with companies like MeetKai to accelerate the development of localized language models, aiming to stay asset-light and focused on returns.
Looking ahead, Terzioglu expects the market to continue re-rating VEON as its pivot toward AI-powered digital services becomes clearer. "We're already valued differently," he noted. "We are a digital operator today—and an AI operator over time."
On the price action front, VEON shares ended Tuesday's session up 3.39% at $46.30.
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