This article examines how artificial intelligence (AI) impacts state sovereignty and the balance between innovation and control in AI governance through a case study of Türkiye. As AI technologies become increasingly sophisticated, they challenge traditional notions of sovereignty, creating tensions between fostering innovation and maintaining regulatory control. The concept of “AI sovereignty” encompasses a state’s ability to exercise meaningful control over AI infrastructure, data resources, regulatory frameworks, and technological capabilities. Türkiye’s AI strategy illustrates how “middle powers” navigate this balance, especially as it stands at the crossroads of Europe and Asia, requiring Türkiye to develop distinct approaches that reflect its unique geopolitical position. The analysis reveals that sovereignty in the AI domain encompasses multiple dimensions—technical capabilities, regulatory frameworks, and strategic positioning—requiring adaptable governance approaches. The findings offer insights for jurisdictions seeking to balance innovation imperatives with control mechanisms while maintaining strategic autonomy in an evolving global AI landscape.