AI has become the main magnet for investment in Kazakhstan

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Arman Korzhumbayev Editor-in-Chief
Photo by: Gov

Kazakhstan has built a rapidly growing startup ecosystem in the field of artificial intelligence. More than 100 AI startups are now operating across the country, while venture investment in AI projects increased more than fivefold between 2023 and 2025 – from around $14 million to $73 million. As a result, artificial intelligence now accounts for more than half of all venture investments in Kazakhstan, DKNews.kz reports.

These findings are presented in the Kazakhstan AI Country Report, the country’s first comprehensive overview of the AI market. The report was officially presented at the Astana Hub Event Hall in the capital and marks an important milestone for Kazakhstan’s technology sector.

From digitalization to large-scale AI adoption

According to the report, Kazakhstan is entering a new phase of development. If previous years were focused on digitalization, the current stage is defined by the large-scale adoption of artificial intelligence.

AI is increasingly viewed as a key driver of economic growth and a tool for strengthening Kazakhstan’s international competitiveness. The authors estimate that AI adoption could deliver an additional 0.5-2% annual increase in GDP in the medium term by boosting productivity across more than half of all jobs.

How the report was prepared

The study was prepared by RISE Research in partnership with Mastercard and Freedom Bank, with support from the Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan and GITEX AI Central Asia & Caucasus.

It is based on more than 30 in-depth interviews with industry practitioners, an analysis of international benchmarks, business models of over 100 Kazakhstani AI startups, and 10 real-world AI implementation case studies.

Government strategy behind the AI push

Vice-Minister of Artificial Intelligence and Digital Development Dmitry Mun highlighted that Kazakhstan’s approach to AI is systematic and institutionally embedded.

“Kazakhstan is implementing a comprehensive, institutionally embedded AI strategy. It includes the adoption of a dedicated Artificial Intelligence Law, the creation of a National AI Platform, the development of sovereign computing infrastructure, support for Kazakh-language large language models (LLMs), the launch of the international AI center Alem.ai, and large-scale human capital development programs. As a result, by 2025 around 1 million specialists had already been trained in AI-related skills, and by 2030, it is planned to equip 5 million citizens with basic and advanced AI skills”.

Startups with global ambitions

Most Kazakhstani AI startups focus on applied B2B solutions and operate not only in the domestic market but also internationally. The highest concentration of projects is seen in Enterprise AI and business automation, Industry 4.0, MarTech, EdTech, and MedTech.

The year 2025 became a turning point for the ecosystem. Kazakhstan recorded its first AI unicorn – Higgsfield AI – and the largest Bridge and Series A funding rounds in the country’s history. These deals demonstrated that AI companies founded by Kazakhstani entrepreneurs are capable of attracting major international capital.

How business views artificial intelligence

Mastercard’s Country Manager for Kazakhstan and Central Asia, Sanzhar Zhamalov, emphasized the practical value of AI for economic transformation.

“Mastercard sees AI as one of the core drivers of economic transformation, unlocking new opportunities for growth. The Report captures our perspective on AI as a practical engine for productivity gains and stronger business competitiveness in Kazakhstan. We are seeing an ambitious AI ecosystem emerge in the country with the potential to deliver world-class solutions and we are committed to being an active contributor and trusted technology partner in its development”.

Infrastructure is no longer a bottleneck

A dedicated section of the report analyzes computing infrastructure and human capital as the backbone of the AI ecosystem. According to the authors, computing capacity is no longer a critical constraint.

This shift is driven by the launch of two new AI clusters – Alem.Cloud and AI-Farabium by Kazakhtelecom JSC – with a combined capacity of around 3.6 exaflops. The report estimates that approximately 2,000 H100 and H200-class GPUs are already operating across the country.

Where AI is advancing fastest

Industries with high digital maturity and large data volumes are leading AI adoption. These include finance, telecommunications, electronic government services, retail, and IT, where AI is widely used in customer service, marketing, analytics, and risk management.

Aidos Zhumagulov, Member of the Board of Directors of Freedom Bank, described the broader impact of this shift:

“Growth in venture investment and the emergence of the first unicorn confirm the maturity of Kazakhstan’s technology market. For the financial sector, this marks a transition toward more sophisticated, intelligent products. Today, banks use AI in risk management, fraud prevention, data analytics, and customer service. Large volumes of data and high reliability requirements make financial institutions a natural environment for the practical application of such technologies. When this experience is supported by infrastructure, regulation, and talent development, it begins to work at the level of the entire economy. This approach lays the foundation for Kazakhstan’s long-term digital growth”.

Strategic focus beyond tech

At the same time, the government is placing a strategic emphasis on deploying AI in the real sector and socially significant industries with high economic and public impact. These include industry, agriculture, transport and logistics, energy, education, and healthcare.

Strengths and structural challenges

The report highlights several strengths of Kazakhstan’s AI market: consistent government support, investment in sovereign computing infrastructure, skills development, a high level of digital maturity, and a growing startup ecosystem. Another advantage is the country’s young and educated population – in 2025, 21% of graduates chose engineering and ICT-related fields.

However, structural constraints remain. These include a shortage of high-quality industry-specific data, uneven access to infrastructure and competencies across regions, low levels of R&D funding, a lack of experienced specialists, and limited access to late-stage venture capital.

Why this report matters

According to Assel Abdrakhmanova, Managing Partner at RISE Research, Kazakhstan’s AI journey is moving beyond experimentation.

“Artificial intelligence in Kazakhstan is moving beyond isolated experiments to become part of the country’s economic architecture – from startups and AI-based enterprise adoption to the realisation of the national-level policy in this domain. The synchronized progress of startups, business, and government is a key indicator of a maturing AI market”.

The Kazakhstan AI Country Report is designed to serve as a reference point for investors, businesses, and policymakers shaping the country’s long-term AI strategy and integrating Kazakhstan into the global economy under the strategic vision of Generative Nation.

DKNews International News Agency is registered with the Ministry of Culture and Information of the Republic of Kazakhstan. Registration certificate No. 10484-AA issued on January 20, 2010.

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