Following the adoption of the Pact for the Future and the Global Digital Compact in 2024, capacity building in artificial intelligence (AI) has become a global priority for the LMICs to avoid the AI divide. Growing at a faster pace with ever changing technological goalposts, higher level of policy uncertainty and requiring investments in billions, AI divide could prove to be even more disruptive than broader Digital Divide the international community has been dealing with for many years. The AI divide may have many dimensions, from demographic one (e.g. millennials vs gen Alpha) to gender one, from occupational (e.g. white vs blue color) to professional (with some seeing faster and wider adoption which could mean accelerated pace of displacement or, on the contrary adaptation) to geographical (e.g. urban vs rural, coasts vs heartland), from linguistic (widely used vs rare languages) to cultural. However, it is the jurisdictional or sovereign dimension that may prove to be most disruptive. LMICs face systemic barriers to AI development due to resource gaps in hard- (compute), soft- (algorithms and data), and human-ware (skilled workforce). This policy brief examines a multidimensional need for AI capacity development using innovative financing mechanisms, both monetary and in-kind (such as data, compute, skills, policies, etc), considers if G20 AI Principles are still up to the challenge, and provides some suggestions for AI Capacity Development mechanisms.