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Kazakhstan to Launch AI Fund Backed by National Bank

Kazakhstan will establish a dedicated Artificial Intelligence Fund to finance digital and educational initiatives, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiev announced at an expanded government meeting. According to Madiev, the fund will be capitalized using resources from the National Bank, with the government currently finalizing its financial and organizational structure. The fund is expected to serve as the main vehicle for identifying and supporting priority AI and digitalization projects, as well as educational programs. Madiev cited international precedents, noting that leading technological nations allocate between 4% and 6% of GDP to digital development and artificial intelligence over three years. Based on ministry projections, such investments could yield a multiplier effect of 5 to 1, with the potential to contribute up to 1.5% of GDP annually in additional economic growth. One of the fund’s key focuses will be integrating AI solutions into Kazakhstan’s public and quasi-public sectors. Simultaneously, the country is pursuing international tech partnerships. With presidential backing, Kazakhstan has approved the creation of a joint venture with Chinese artificial intelligence firm 01.AI. Scheduled to launch in March, the venture will operate the National Artificial Intelligence Platform and focus on developing AI agents to enhance public sector decision-making. 01.AI is a startup founded by former Google China CEO Kai-Fu Lee. The company is best known for its open-source language model Yi-34B, positioned as an alternative to ChatGPT. At the meeting, President Kassym-Jomart Tokayev emphasized that AI is a foundational pillar of Kazakhstan’s emerging economic model. Anticipated benefits include increased labor productivity, growth in export-oriented industries, higher production of high value-added goods, and deeper integration into global digital networks. However, Tokayev also cautioned against using insufficient digitalization as a scapegoat for systemic inefficiencies. “Technology should not serve as an excuse for management shortcomings,” he noted. As previously reported by The Times of Central Asia, Kazakhstan joined OpenAI’s “Education for Countries” initiative, aimed at integrating AI tools into national education systems.

Kazakh Startup Higgsfield Becomes AI Unicorn, Signaling Nation’s Tech Aspirations

When Kazakh AI startup Higgsfield announced an $80 million funding round this month, its valuation soared past $1.3 billion, officially granting it “unicorn” status. For Silicon Valley observers, it marked another chapter in the ongoing boom in AI. But for Kazakhstan, a country seldom spotlighted in global tech circles, the milestone carries broader significance: the emergence of a homegrown company with global reach and competitiveness. Higgsfield was co-founded by 29-year-olds Erzat Dulat and Alex Mashrabov. The startup focuses on AI-generated video tools tailored for marketing and social media use and currently reports annual revenue of $200 million. Remarkably, the company reached $10 million in recurring revenue within just a few weeks, a rare achievement, even in the fast-paced AI sector. Leading venture capital firms, including Accel, GFT Ventures, and Menlo Ventures, cited this momentum as a key factor behind their investment. Rather than competing directly with giants like OpenAI or Google, Higgsfield leverages existing AI models to build practical tools for businesses. Its platform targets marketers, creative agencies, and social media professionals, an expanding segment that some analysts believe could rival traditional entertainment industries like Hollywood in both scale and value. The company’s success has not gone unnoticed by Kazakhstan’s leadership. President Kassym-Jomart Tokayev recently met with Dulat and Murat Abdrakhmanov, founder of the venture capital platform MA7 Ventures, to discuss artificial intelligence’s role in government, economic development, and national tech strategy. Tokayev praised Higgsfield as a model of Kazakh innovation with global potential and reaffirmed the country’s goal of becoming a launchpad for IT companies that can scale internationally without relocating abroad. Dulat noted that roughly 95% of Higgsfield’s workforce is Kazakh, highlighting the strength of the country’s domestic talent pool. He also expressed readiness to partner with the government on workforce development and AI-focused education initiatives. Abdrakhmanov emphasized that building a strong venture capital ecosystem is essential to Kazakhstan’s technological future and argued that the country is well-positioned to play a greater role in global investment networks. The meeting reflects a broader shift among emerging tech economies: instead of serving merely as consumer markets, they are increasingly aiming to foster globally competitive companies while retaining talent and intellectual property at home. [caption id="attachment_43381" align="aligncenter" width="936"] Higgsfield’s team @digitalbusiness.kz[/caption] Nonetheless, challenges remain. The AI-generated video market is highly competitive. Higgsfield plans to scale its team from 70 to 300 employees by year’s end, a move that will test its organizational capacity. Regulatory and ethical concerns around synthetic media also remain unresolved. Still, Higgsfield’s rapid rise underscores that AI innovation is no longer confined to traditional power centers like Silicon Valley, Beijing, or Europe. It offers a compelling example of Kazakhstan’s growing ambition to establish itself as a meaningful player in the global technology economy. For U.S. investors and tech analysts, it’s a reminder that the future of AI may be shaped as much by emerging markets as by established ones.

Higher Education

From Central Asia to the World: How a U.S.-Raised Kazakh Founder Is Using AI to Unlock Global Education

For many talented students across Central Asia, admission to the world’s leading universities remains an elusive goal, not due to a lack of ability, but because of complex application procedures, and expensive consulting services. A new AI platform, yoonee.ai, is working to change that. At the heart of the initiative is a woman bridging continents and reconnecting with her cultural roots. One of the platform’s co-founders is ethic Kazakh Gulmira Sage, who was adopted and raised in the United States. Despite growing up in America, she says her connection to Kazakhstan never waned. Last year, her journey back to Kazakhstan to meet her biological mother captured national attention. Now, she is once again in the spotlight, this time for launching a project that promises to reshape access to global education. “Coming back to my homeland after many years felt like reclaiming a missing part of myself,” she says. That personal journey now underpins the mission behind yoonee.ai: a platform designed to help students from Central Asia navigate international higher education systems with greater ease and confidence. From Aviation to AI Before venturing into the tech sector, Gulmira worked as an analyst at Delta Air Lines, one of the world’s largest carriers. There, she worked with complex datasets, financial models, and global logistics, skills she says sharpened her systems thinking. “My background is actually in aviation. I worked as an analyst at one of the biggest airlines in the world, dealing with complex data, financials, and the global logistics that keep an airline moving,” she explains. “Aviation connects people physically, and IT does the same thing electronically. Technology connects them digitally.” That experience fueled her belief that digital tools, and AI in particular, could help eliminate long-standing educational barriers. Together with her co-founders, Feruza and Aidana, she began building yoonee.ai, drawing on their shared academic and professional experiences in the U.S., France, and Kazakhstan. How the Platform Works Yoonee.ai allows students to upload academic documents directly into the system. Using AI, the platform translates them with academic accuracy and converts grades into internationally recognized formats. For instance, GPA scores from five-point or 100-point systems are standardized to U.S. benchmarks, allowing students to assess how competitive their profiles are for specific universities. The platform also offers a “match score” that estimates a student’s compatibility with selected institutions. According to the founders, many qualified applicants are rejected not for academic shortcomings but due to formatting errors or unmet technical requirements. “Geography Should Not Decide a Student’s Future” The team sees its mission as the democratization of global education. Their goal is to eliminate what they call the “geographic tax” – the added financial and informational burden on students from developing regions. This is especially relevant in rural parts of Kazakhstan and neighboring countries, where access to U.S.-trained admissions consultants is limited and often unaffordable. To improve accessibility, the platform will be available in Kazakh, Russian, and Uzbek, allowing students to explore global university options in their native languages, directly from their smartphones. Cultural...

Healthcare

Kazakhstan to Expand Use of AI for Early Detection of Strokes and Cancer

Kazakhstan’s Ministry of Health is moving to expand the use of AI to improve early diagnosis of strokes, cancer, and other high-impact diseases. Officials say the rollout aims to reduce mortality, increase diagnostic accuracy, and ease the workload of healthcare professionals. According to the ministry, a list of priority AI initiatives has been compiled to help detect socially significant diseases at early stages and support clinical decision-making. The targeted areas include stroke, lung cancer, breast cancer, and dental diagnostics through the analysis of medical imagery using machine learning algorithms. Several platforms are already operational and are being integrated more widely into the national healthcare system. Among the current AI platforms in use: Cerebra – deployed in nine category II and III stroke centers across five regions, capable of identifying stroke symptoms in under three minutes; WDsoft – used in 190 healthcare facilities in 10 regions to assist in the early detection of cancer and pneumonia; AIDENTIS – adopted by 65 dental clinics and three medical universities to analyze X-ray imagery; ALIMA – an AI-based medical assistant now active in over 700 clinics nationwide. The ALIMA platform processes patient complaints, medical records, and images to suggest potential diagnoses, recommend examinations, and propose treatment plans aligned with clinical protocols. These AI initiatives rely on computing resources provided by the Ministry of Artificial Intelligence and Digital Development, including eight graphics processors, and are supported through API-based integrations. Looking ahead, the Ministry of Health intends to introduce AI tools to evaluate pharmaceuticals and medical devices and to launch a project for early detection of chronic heart failure using the Smart ECG system. This technology enables remote interpretation of electrocardiograms in clinics that lack specialized functional diagnostics staff. As previously reported by The Times of Central Asia, Kazakhstani surgeons recently conducted the region's first joint replacement surgeries in Tashkent using the MAKO robotic system, another example of the country’s growing investment in med-tech innovation.

data center

Kazakhstan Plans ‘Data Center Valley’ in Pavlodar Powered by Coal Energy

Kazakhstan intends to establish a major data center hub in the Pavlodar region, powered by the coal-rich Ekibastuz basin. The announcement was made by President Kassym-Jomart Tokayev during a meeting of the National Kurultai (Assembly), where he outlined key steps in the country’s digital and energy strategies. The initiative is part of Kazakhstan’s broader goal to develop a fully-fledged digital economy by 2029. As Tokayev noted, 2026 has been declared the Year of Digitalization and Artificial Intelligence. In line with this vision, the government recently established the Ministry of Artificial Intelligence and Digital Development to oversee technological transformation. “The introduction of digital solutions and AI technologies will improve the quality of public administration and industrial efficiency. But these plans require robust and sustainable energy infrastructure,” Tokayev stated. He stressed the need to designate zones in advance for the construction of high-capacity data centers, complete with energy, cooling, and security systems. The proposed “data center valley,” developed in cooperation with the Pavlodar regional akimat, is expected to be powered by the Ekibastuz coal basin, one of the largest in the country. Tokayev emphasized that Kazakhstan must not delay the commissioning of new energy infrastructure and should not rely solely on nuclear power. The country’s first nuclear plant, currently in planning with Russia’s Rosatom, is not scheduled to come online until 2035. He compared data centers to metallurgical plants in terms of electricity demand, underscoring that energy self-sufficiency is becoming central to Kazakhstan’s economic strategy. The country’s current electricity output of 123.1 billion kWh is insufficient to support both its industrial and digital development targets. Kazakhstan holds an estimated 33 billion tons of coal reserves, enough to last 300 years at present consumption levels. Tokayev called for coal to be treated as a strategic resource, with the application of modern environmental technologies to reduce its environmental impact. The president instructed the government to present a proposal by March 20 to grant coal generation the status of a national project. Planned energy infrastructure projects include new coal-fired thermal plants in Kokshetau, Semey, and Oskemen, the commissioning of a plant in Kurchatov, and the expansion of GRES-2 and construction of GRES-3 in Ekibastuz. Simultaneously, the government aims to speed up the deployment of balancing capacities, particularly gas-based generation. However, Tokayev also warned of a worsening gas deficit: in 2024, Kazakhstan’s commercial gas imports surged by 18%, reaching 4.5 billion cubic meters. As previously reported by The Times of Central Asia, the Ministry of Energy plans to eliminate the country’s electricity shortfall and begin energy exports by 2027.

DUMK

Kazakhstan to Launch AI-Powered Imam App

Kazakhstan’s Spiritual Administration of Muslims (DUMK) is set to integrate artificial intelligence into religious practice with the launch of Imam AI, a mobile application designed to provide believers with instant, Sharia-compliant answers to religious questions. The initiative aims to ease the burden on clergy and offer verified religious guidance in a digital format. According to DUMK, the adoption of AI reflects growing public demand for fast and reliable religious information. “In line with modern requirements, we need to systematically introduce the capabilities of artificial intelligence into the religious sphere,” the organization stated in a post on the muftyatkz Instagram page. The Imam AI app will be built on AI technology and will draw from authenticated sources of Islamic knowledge. Supreme Mufti Nauryzbay Kazhy Taganuly stated that the platform would comply fully with Sharia law while providing accessible, on-demand religious consultations. This development is part of a broader effort to digitally transform religious institutions in Kazakhstan. The country has already begun incorporating AI into public administration, notably with the introduction of SKAI, a neural network based on a national language model used in state and quasi-state management. As a further step, DUMK plans to draft a Digital Development Concept for 2026-2028, which will set priorities for the digitalization of religious activities. The Supreme Mufti stressed that failing to adapt to technological change means falling behind the needs of contemporary society. “We are living in an era of technology and digital opportunity. Our responsibility is the systematic and widespread use of digital solutions and artificial intelligence in religious practice, in full accordance with Sharia law,” Taganuly noted. Another key initiative involves the creation of an Islamic finance sector under DUMK. The Mufti stated that growing religious awareness and a desire for ethical earnings have fueled demand for financial products that align with Islamic principles. The new sector will offer Sharia reviews of financial instruments and issue fatwas related to leasing, insurance, investments, bonds, digital assets, and electronic payment systems. Together, the launch of Imam AI and the institutionalization of Islamic finance mark a broader convergence of religion, technology, and economics in Kazakhstan. A recent joint report by the Eurasian Development Bank, the Islamic Development Bank Institute, and the London Stock Exchange forecasts steady growth in Islamic finance across Central Asia. For Kazakhstan, the digitalization of the religious sphere is becoming a key component of its broader modernization agenda, positioning AI not as a novelty but as a practical tool for improving access and meeting evolving societal expectations.