A Kazakh AI startup has reached a $1.3 billion valuation, marking a milestone for Central Asia’s tech scene. Venture capital investment in the region hit $320 million in 2025, with Kazakhstan and Uzbekistan leading the surge.
Central Asia is rapidly emerging as a new hotspot for global venture capital, with Kazakhstan’s Higgsfield making headlines as the region’s first AI unicorn. The video platform, founded by physics-olympiad competitor Yerzat Dulat and Alex Mashrabov, secured a funding extension in January that pushed its Series A total above $130 million and its valuation to $1.3 billion. This landmark deal signals a shift in how international investors view the five countries between Russia and China, no longer treating them as an afterthought.
While Central Asia’s $320 million venture capital market in 2025 remains modest compared to global giants, growth is accelerating. According to RISE Research, two major deals-Higgsfield’s round and a $65.5 million raise by Uzbek e-commerce group Uzum-accounted for 61% of the total. Even excluding these, the market expanded 31% year over year, indicating that early-stage funding is broadening beyond a handful of standout checks.
Kazakhstan has become the region’s investment hub, with venture funding nearly tripling to $209 million in 2025. Artificial intelligence startups attracted about half of that capital. Astana Hub, now Central Asia’s largest tech park, reported $177 million in investment for its resident companies in 2024 and $481 million in tech exports. Uzbekistan, though smaller, is catching up fast: startup funding there has grown more than elevenfold since 2022, reaching $33.8 million last year. The European Bank for Reconstruction and Development’s inaugural Central Asian Star Venture cohort included seven Uzbek finalists, highlighting the country’s rising profile.
Economic growth in the region is outpacing much of the world. The Eurasian Development Bank projects combined growth of 6.6% for Central Asia in 2025, compared to 1.6% for the United States and 1.1% for the eurozone in 2026. Kyrgyzstan led with 11.1% growth last year, followed by Uzbekistan at 7.4%. Uzbekistan alone attracted $8.3 billion in foreign investment in the first two months of 2026, aiming for $53 billion by year’s end. In May, the country’s National Investment Fund, managed by Franklin Templeton, raised $604 million in London’s largest IPO of the year, drawing $2.8 billion in orders.
Major international partnerships are also taking shape. Kazakhstan signed a $10 billion AI infrastructure agreement with NVIDIA and Firebird in June 2026, following President Trump’s C5+1 summit in November 2025, which generated over $130 billion in commercial commitments. These deals underscore the region’s growing global relevance.
Behind the scenes, domestic banks are crucial in channeling this influx of capital. Unlike Silicon Valley or China, where alternative financing options abound, Central Asian banks often serve as the primary bridge for foreign investment. As transaction volumes rise, so does regulatory scrutiny. Governments are pushing compliance standards to international levels: Kyrgyzstan’s National Bank has tightened oversight of international transfers and sanctions monitoring, while Uzbekistan’s central bank has expanded its financial monitoring and anti-money-laundering inspections. Tajikistan’s National Bank has linked the country’s global standing to consistent compliance with international standards.
Individual banks are moving proactively. Halyk Bank, Kazakhstan’s largest lender, highlights sanctions compliance in its annual report, overseen at the deputy-CEO level. Uzbekistan’s Kapitalbank publishes details on its anti-money-laundering controls, with compliance officers reporting to the supervisory board. Asia Alliance Bank and Octobank have joined SWIFT’s KYC Registry, standardizing due diligence for correspondent banks. Kyrgyzstan’s Bakai Bank has taken its case directly to Washington, with CEO Umut Abakirova meeting U.S. Treasury Secretary Scott Bessent and executives from BlackRock and Bank of America in July 2025. Bakai’s compliance division now includes about 30 specialists certified by the International Compliance Association, and all cross-border SWIFT payments undergo both automated and manual review. The bank has also commissioned external Big Four audits of its compliance framework for two consecutive years, exceeding local legal requirements.
Despite these advances, Central Asia’s venture market remains small compared to Southeast Asia or India, and signs of overheating are emerging. Uzbekistan is targeting $2 billion in annual venture investment and 5,000 active startups by 2030, goals that depend on the same correspondent banking relationships now being strengthened by Bakai, Halyk, and Kapitalbank. The institutions and investors that establish trust and infrastructure early are likely to shape how foreign capital enters the region for years to come. For a broader look at how AI megadeals are influencing startup funding across Asia, see this analysis of recent investment trends in the region.
Higgsfield, founded in Kazakhstan, has quickly risen to prominence in the AI sector. The company’s video platform leverages advanced artificial intelligence to generate and edit video content, attracting significant attention from global investors. Since its founding, Higgsfield has expanded its team and operations, positioning itself as a leader in Central Asia’s growing tech ecosystem. Its rapid ascent to unicorn status reflects both the region’s potential and the increasing appetite for AI-driven innovation worldwide.
