This paper explores how generative AI (GenAI) and autonomous systems are transforming industrial processes and emerging as geopolitical tools in the Industry 5.0 era. It argues that GenAI will become a national asset, playing a pivotal role in sovereignty, accessibility, and global influence. It analyzes how the competition for AI leadership will lead to imbalances in talent, computing infrastructure, and data access, reshaping global power structures and accelerating the fragmentation of the digital economy. It highlights the conflict between the human-centric ideology of Industry 5.0 and the autonomy and opacity of GenAI, raising governance challenges related to human control, dual-use risks, and accountability. It analyzes the impact on defense strategy, industrial competitiveness, supply chain resilience, the geopolitical weaponization of export controls, and the rise of data sovereignty. It proposes a comprehensive framework that explores the intersection of GenAI and geopolitics, synthesizing technological, economic, and ethical perspectives. It calls for a governance model that balances national autonomy with international cooperation and protects human-centered values in an AI-driven world.