Kazakhstan’s AI startup ecosystem expands as venture investment reaches $73 million

Kazakhstan’s artificial intelligence startup ecosystem has expanded rapidly, with more than 100 AI-focused startups currently operating nationwide and venture investment in the sector increasing more than fivefold between 2023 and 2025, Qazinform News Agency reports, citing the Ministry of AI and Digital Development.

AI, artificial intelligence
Photo credit: Canva / Qazinform

Venture funding for AI projects rose from about $14 million to $73 million over the period, with artificial intelligence accounting for more than half of all venture investments in Kazakhstan. According to available data, AI adoption is expected to contribute an additional 0.5-2% to annual GDP growth in the medium term by improving productivity across more than half of all jobs.

“Kazakhstan is implementing a comprehensive and institutionally anchored AI strategy, including the preparation of a specialized Law on Artificial Intelligence, the creation of a National AI Platform, the development of sovereign computing, support for Kazakh-language LLM programs, the launch of the international AI center Alem.ai, and large-scale human capital development programs. As a result, approximately 1 million people had received AI training by 2025, and the goal is to equip 5 million citizens with basic and advanced AI skills by 2030,” Vice Minister of AI and Digital Development Dmitry Mun said.

Most Kazakhstani AI startups focus on applied B2B solutions and operate in both domestic and international markets, with the highest concentration in enterprise AI and business automation, Industry 4.0, MarTech, EdTech and MedTech. The ministry noted that last year the ecosystem reached a key milestone with the emergence of its first AI unicorn, Higgsfield AI, along with the largest Bridge and Series A investment deals recorded in the country’s AI sector.

Earlier, Qazinform News Agency reported on local AI startups that have the potential to become unicorns, according to the President of Kazakhstan.

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