ASTANA — Silk Road Innovation Hub ended last year on a high note by hosting a Silicon Valley conference in October at San Francisco’s renowned Yerba Buena Arts Center — where Apple’s founder Steve Jobs famously debuted the iPhone and iPad. This event marked the first-ever conference in Silicon Valley dedicated to exploring Central Eurasia’s tech potential. With its mission to place Central Eurasia on the global VC and startup map, the hub is steadily executing its strategic plan.
Founder and CEO of Silk Road Innovation Hub Asset Abdualiyev .Photo credit: The Astana Times
In an interview with The Astana Times YouTube channel, Founder and CEO of Silk Road Innovation Hub Asset Abdualiyev explained why the focus is on Central Eurasia rather than just Central Asia. Initially, the hub concentrated on five Central Asian countries, but Abdualiyev and his co-founder, Asror Arabjanov from Uzbekistan, soon realized this approach was too narrow. They expanded their scope to include Azerbaijan and Türkiye, with Mongolia and Georgia later expressing interest in joining the project.
This expansion proved to be a strategic move, as Central Eurasia is a thriving region with untapped potential. With a population of 100 million and an average age of 27, the region graduates approximately 200,000 STEM students annually. It boasts essential ingredients for tech industry growth: strong universities, a developing startup ecosystem, venture capital funds, and growing representation in Silicon Valley.
In its first operational year, the network of startups from nine countries — Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan, along with Azerbaijan, Türkiye, Georgia, and Mongolia quickly gained traction, attracting 80 resident startups that collectively secured over $30 million in funding.
Abdualiyev emphasized that securing funding is crucial, but startups must also align their ideas with emerging trends — most notably, artificial intelligence (AI).
“So it is really important for our startups to ride this AI wave and prepare for what is coming next,” he said.
He also highlighted that startups from Central Eurasia have the potential to excel in any niche.
“It is all about customer discovery. Entrepreneurs need to constantly explore new business models, engage with their customers, and identify unmet needs. Success does not come from individual strengths alone — it is driven by market demand. You have to build something people truly want,” he noted.
AI: the biggest disruptor
Abdualiyev pointed out that since the 1960s, computing has undergone several major technological revolutions. The first was the rise of the semiconductor industry, followed by the adoption of personal computers. Then came the expansion of the internet in the 1990s and 2000s, and later, the mobile internet boom of the 2010s. Now, AI is at the forefront of technological disruption. He believes the AI revolution surpasses all previous technological shifts in scale and impact.
“When I talk about incremental inventions, I mean disruptive innovations. Today, everything is on a smartphone. A child in a remote Kazakh village with a smartphone and internet access has more information at their fingertips than the United States (U.S.) president did in 1992,” he said.
Founder and CEO of Silk Road Innovation Hub Asset Abdualiyev spoke to The Astana Times correspondent Aida Haidar. Photo credit: The Astana Times.
AI is a major priority for Kazakhstan at the government and individual levels. Recently, the country unveiled the Alem.AI Artificial Intelligence Center, set to be housed in the iconic Nur Alem sphere — the centerpiece of Expo 2017. President Kassym-Jomart Tokayev introduced this initiative at the end of last year, emphasizing the importance of mitigating AI-related risks. He instructed the establishment of the Council for the Development of Artificial Intelligence (2024-2029), which involved leading international experts, and stressed the need for thorough legislative oversight to balance AI’s potential with its risks.
Abdualiyev sees AI as a catalyst for Kazakhstan’s technological breakthrough, particularly in computing and data center development. He commended the government’s efforts to embrace 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 noted a critical gap: Central Eurasia currently lacks a dedicated AI data center.
“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 stressed the need for Kazakhstan to set up its own data center — not just for personal use but also for 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.
The role of Silk Road Innovation Hub and the brain drain debate
Although Silk Road Innovation Hub is a fully private U.S.-registered company, it has received strong moral support from various Kazakh government agencies rather than direct financial backing. Some have raised concerns about whether such initiatives benefit Kazakhstan if talented individuals move abroad to develop their startups.
Abdualiyev acknowledged these concerns but argued that the benefits far outweigh the risks. He emphasized that the perceived brain drain is not as significant as some might imagine, as many entrepreneurs return to Kazakhstan or share their invaluable experience with others, contributing to the country’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 don’t stay abroad permanently. Instead, they gain valuable experience, expand their vision, and return home as more ambitious and driven individuals,” he said.
He also highlighted a growing trend among venture-backed startups: raising capital in the U.S. while keeping operations in their home countries.
“Most startups don’t relocate their 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 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-paid jobs for engineers and tech specialists,” he said.
Abdualiyev believes initiatives like Silk Road Innovation Hub will continue to foster innovation, attract investment, and build a sustainable startup ecosystem in Central Eurasia, proving that talent mobility can ultimately strengthen local economies rather than deplete them.
For full conversation follow the link to The Astana Times Youtibe channel
