Emerging Technological Landscape of Central Eurasia Gets Defined in Silicon Valley's Innovation Hub
Rewritten Article:
Central Eurasia: A Tech Goldmine on the Brink
In the heart of Silicon Valley, at the prestigious Yerba Buena Arts Center - where Steve Jobs once unveiled the iPhone and iPad - the Silk Road Innovation Hub hosted a conference in October 2021. This groundbreaking event marked the first time Silicon Valley ever devoted a conference to exploring Central Eurasia's tech potential. The hub, with a mission to propel Central Eurasia onto the global venture capital and startup map, is steadily executing its strategic plan.
Founder and CEO of Silk Road Innovation Hub, Asset Abdualiyev. Photo credit: The Astana Times
In an exclusive interview with The Astana Times YouTube channel, the enigmatic Abdualiyev explained why Central Eurasia, rather than just Central Asia, should be the focus. Initially, the hub aimed at five Central Asian countries, but Abdualiyev and his co-founder, Asror Arabjanov from Uzbekistan, soon realized this approach was too narrow. They expanded the scope to include Azerbaijan, Turkey, Mongolia, and Georgia, with more nations expressing interest.
Central Eurasia is more than just a geographical region - it's a buzzing marketplace of untapped potential. With a youthful population of 100 million and an average age of 27, the region graduates approximately 200,000 STEM students annually. It boasts strong universities, a burgeoning startup ecosystem, venture capital funds, and growing representation in Silicon Valley.
In its first year, the network of startups from nine countries - Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan, along with Azerbaijan, Turkey, Georgia, and Mongolia - quickly gained traction, attracting 80 resident startups that collectively secured over $30 million in funding.
Kazakhstan's focus on AI
Artificial Intelligence (AI) is a major priority for Kazakhstan, both at the government and individual levels. Recently, the country revealed plans for the Alem.AI Artificial Intelligence Center, which will reside in the iconic Nur Alem sphere from the EXPO 2017. President Kassym-Jomart Tokayev introduced this initiative at the end of last year, emphasizing the need to mitigate AI-related risks. He instructed the formation of the Council for the Development of Artificial Intelligence (2024-2029), involving leading international experts, and stressed the need for robust legislative oversight to balance AI's potential with its risks.
Abdualiyev considers AI as a catalyst for Kazakhstan's technological breakthrough, particularly in computing and data center development. He applauded the government's efforts to adopt AI responsibly while maximizing its benefits.
"I think the work being done by the Ministry of Digital Development and other tech-focused entities is significant. AI development relies on supercomputers - essentially clusters of GPUs (graphical processing units), often manufactured by Nvidia. These supercomputers train AI models, enabling them to generate responses, create art, and much more," he explained.
However, he pointed to a critical oversight: Central Eurasia currently lacks an AI data center dedicated to its unique needs.
"For Kazakhstan and the region, establishing a GPU cluster is crucial. I'd argue that access to GPUs is as vital as access to the internet. Without a local AI infrastructure, sensitive data would have to be processed externally, posing security and sovereignty concerns," he added.
Abdualiyev strongly advocates for Kazakhstan to develop its own data center for both personal and government applications.
"This is why there's a strong push to develop a data center in Kazakhstan. The government is making commendable efforts to secure Nvidia data centers, ensuring AI can be leveraged safely for critical applications, including e-government services," he said.
Silk Road Innovation Hub: Turning Talent into Gold
Although Silk Road Innovation Hub is a privately-owned U.S.-registered company, it has garnered strong moral support from various Kazakh government agencies rather than direct financial backing. Some have voiced concerns about the impact of such initiatives, wondering whether they benefit Kazakhstan if talented individuals relocate abroad to develop their startups.
Abdualiyev acknowledged these concerns, but he argued that the benefits outweigh the consequences. He emphasized that perceived brain drain isn't as severe as some may presume, as many entrepreneurs return home or share their invaluable experiences with others, fostering Kazakhstan's innovation ecosystem.
"Last year, we ran several programs that saw 200 startups from Central Eurasia physically participate in Silicon Valley - roughly 300 founders in total. Out of those, only five remained in the U.S., while 195 returned home. This proves that most startups do not stay abroad permanently. Instead, they gain valuable experience, expand their visions, and return home as more ambitious and driven individuals," he said.
He highlighted an emerging trend among venture-backed startups: raising capital in the U.S. while maintaining operations in their home countries.
"Most startups do not relocate entire teams because it's too expensive. Instead, one or two key figures - the CEO and possibly a chief product officer - move to the U.S. to secure funding, while the rest of the team remains in Kazakhstan, Uzbekistan, or elsewhere. This setup creates high-paying jobs in the region and strengthens local economies," he explained.
A prime example is Higgsfield, a leading AI company originating from Central Eurasia. Currently valued at over $100 million, the company has raised $20 million in venture capital.
"Higgsfield was founded by Uzbek and Kazakh entrepreneurs. Only one team member, Alex Mashayakov, is based in Silicon Valley, where he raises funds and manages partnerships. The entire development team operates from Almaty, creating well-paying jobs for engineers and tech specialists," he said.
Abdualiyev believes that initiatives like Silk Road Innovation Hub will continue to nurture innovation, attract investment, and build a sustainable startup ecosystem in Central Eurasia, ultimately proving that talent mobility can ultimately strengthen local economies rather than deplete them.
- The Silk Road Innovation Hub, with its focus on Central Eurasia, sees artificial-intelligence as a key driver for Kazakhstan's technological advancement, particularly in computing and data center development.
- The lack of an AI data center dedicated to the unique needs of Central Eurasia is a critical oversight, as access to such infrastructure is as vital as access to the internet for sensitive data processing, according to the founder of Silk Road Innovation Hub, Asset Abdualiyev.
