EXCLUSIVE: VEON Bets on Sovereign AI — CEO Says Local AI Models Are Next Big Profit Driver

VEON Ltd. (NASDAQ:VEON) is positioning itself as one of the first telecom operators to turn sovereign AI from a policy concept into a profit engine. VEON stock is moving. See the chart and price action here. VEON CEO Kaan Terzioglu told Benzinga in an exclusive interview that the company's decade‑long digital transformation is entering a new phase — one where locally built AI models are powering growth across five frontier economies: Pakistan, Bangladesh, Ukraine, Kazakhstan and Uzbekistan. "VEON is not a traditional telco," Terzioglu said. "We are a digital services company that happens to provide connectivity." Artificial intelligence, he added, isn't a standalone segment but a "horizontal capability" integrated across fintech, education, healthcare, entertainment, and enterprise services. That integration appears to be paying off. VEON's digital revenues rose to $759 million in 2025, representing 17.3% of total group revenue, with strong momentum into the fourth quarter. The company's digital ecosystem reached 205 million active users, surpassing its connectivity base of 150 million. In Pakistan, the company's AI assistant within the Simosa super‑app now serves over one million monthly users. Across key markets, AI is already embedded in customer‑facing tools like tutoring apps, health care assistants and farmer coaching services — real products generating measurable revenue uplift. Terzioglu said the opportunity lies in building national AI ecosystems that reflect local languages and values. "Sovereign AI is not an option; it is non-negotiable, a raison d'être," the CEO told Benzinga. He also pointed out that sovereign AI for VEON's markets — such as Pakistan, Bangladesh and Ukraine — is a gap global hyperscalers have largely ignored. "Local languages and cultural context are simply not a priority for hyperscalers. These markets are underserved by global AI models," he told Benzinga. "If we don't build for them, no one will." Collaborations with partners such as MeetKai are accelerating VEON's development of localized language models while keeping the group asset‑light and focused on returns, not infrastructure spending. Looking ahead, Terzioglu expects VEON's market re‑rating to follow its pivot toward AI‑powered digital services. "We're already valued differently," he said. "We are a digital operator today — and an AI operator over time." VEON Price Action: According to data from Benzinga Pro, VEON shares ended Tuesday’s session up by 3.39% at $46.30. Photo: CHIEW / Shutterstock