At the annual Almaty Digital Forum, experts highlighted the growing importance of preparing for the AI revolution sparked by the sudden rise of the Chinese AI company DeepSeek. The company’s appearance at the forum raised questions about the future of AI and humanity, particularly due to the affordability of DeepSeek’s AI models, which cost just $6 million to develop, compared to the $40-100 million investments from other global players. This has made AI solutions more accessible to smaller developers and countries.
During the forum, Kaan Teryioglu, CEO of VEON Group, emphasised that AI’s potential lies in enhancing human capabilities across various sectors. Experts agreed that AI will no longer be dominated by tech giants, with smaller developers now able to harness its power. However, concerns were raised about the risk of cultural homogenisation if AI technologies are not adapted to local languages and values.
The forum also showcased Central Asia’s ambition to keep up with global AI developments, with high-level representatives from several countries, including Kazakhstan, Armenia, and Uzbekistan, in attendance. Kazakhstan, in particular, is planning to train a million AI professionals by 2030, with the goal of boosting AI exports to $5 billion by 2029. The government is also launching Alem.ai, a hub for AI research, start-ups, and international collaboration, expected to play a key role in the country’s AI future.
Kazakhstan’s ambitious plans have attracted the attention of global tech giants, who are already in discussions about establishing offices at Alem.ai. With a focus on developing local talent and fostering innovation, Kazakhstan aims to position itself as Central Asia’s intellectual capital and a key player in the global AI landscape. The forum’s success, with over 220 tech companies and 80 local start-ups participating, signals that the country’s plans may not be overly ambitious after all.
Elon Musk has brought in a group of young engineers, many with little government experience, to reshape the US federal infrastructure. Among them is Gavin Kliger, a 2020 University of California graduate, who now serves as a special adviser at the Office of Personnel Management. Previously a senior software engineer at AI startup Databrinks, Kliger has also worked at Twitter. His online writings reflect a scepticism towards established political structures, and he has defended figures like Matt Gaetz while promoting controversial policy ideas.
Luke Farritor, another key figure, was a former SpaceX intern and a Thiel Fellow. He worked on software for rocket components and gained recognition for helping decipher an ancient Greek scroll. Reports indicate he has been granted access to USAID systems and is listed as an engineer in the Department of Health and Human Services. He and Musk’s aides have also sought entry into systems managing over $1 trillion in government contracts and payments.
Edward Coristine, the youngest of the group, appears to have only recently graduated from high school and was briefly enrolled at Northeastern University. He spent three months at Neuralink, Musk’s brain-interface company, and is now listed as an ‘expert’ in government records. Business filings link him to several tech ventures, including a company named Tesla.Sexy LLC, which remains active.
Musk’s influence on federal operations continues to expand as his team gains access to critical government systems. A US Office of Personnel Management spokeswoman declined to comment on the appointments.
AMD has announced it will release its next-generation data centre GPUs, the Instinct MI350 series, earlier than originally planned. CEO Lisa Su revealed during the company’s Q4 2024 earnings call that strong demand and smooth development have allowed AMD to move up production to mid-2025, rather than the latter half of the year.
The move comes as AMD looks to gain ground on industry leader Nvidia, whose dominance in the data centre market continues to pose a challenge. Despite this, AMD’s Instinct GPU sales surpassed $5 billion in 2024, and the company expects its data centre division to see double-digit growth in 2025. Major customers such as Meta, Microsoft, and IBM have contributed to AMD’s momentum in the AI computing sector.
Su expressed confidence in the expansion of AMD’s data centre business, forecasting substantial growth in AI-related computing over the coming years. Investors responded positively to the announcement, with AMD’s stock rising by over 4% following the earnings report.
Chinese companies are increasingly backing DeepSeek‘s AI, marking a pivotal moment for the industry. Firms like Moore Threads and Hygon Information Technology are enabling their computing clusters to support DeepSeek’s R1 and V3 models, which use domestically produced graphic processing units (GPUs). Analysts have hailed this as a ‘watershed moment,’ particularly as these models rival those run on global high-end chips.
Huawei has also joined the trend, integrating DeepSeek’s models with its Ascend cloud service and partnering with AI infrastructure start-up SiliconFlow. This integration showcases the growing potential of Chinese-made chips to support competitive large language models, reducing reliance on US hardware. Additionally, major Chinese tech companies such as Alibaba, Baidu, and Tencent have made DeepSeek’s models available through their cloud services.
DeepSeek’s rise has captured significant attention, especially after the launch of its free AI assistant, which surpassed ChatGPT in app downloads within days. The company’s approach, requiring far less computing power than its US counterparts, has further fueled its success. While DeepSeek is gaining traction globally, some countries, including Italy and the Netherlands, have raised privacy concerns, leading to investigations and blocks on its app.
China has introduced a series of measures targeting US businesses, including Google, farm equipment makers, and the owner of Calvin Klein, following the implementation of new US tariffs on Chinese goods. Among these measures, China launched an investigation into Google for potential violations of anti-monopoly laws, although no further details were provided. Despite its minimal presence in China, Google continues to collaborate with local advertisers.
China’s Ministry of Commerce also added US firms PVH Corp and Illumina to its ‘unreliable entity’ list, accusing them of actions that harmed Chinese companies. The companies could face significant sanctions, including trade freezes and restrictions on foreign staff. PVH has already been under scrutiny for its ties to the Xinjiang region.
As part of a broader response, China imposed 10% tariffs on US farm equipment, which could impact companies like Caterpillar, Deere & Co., and AGCO. Tesla’s Cybertruck, a model that has yet to receive regulatory approval, could also be affected. These new tariffs, set to take effect on February 10, signal an escalation in trade tensions between China and the US, extending beyond the tech sector.
These moves mark a significant increase in trade restrictions, building on previous actions taken under former US President Biden’s administration. Analysts suggest that these measures may be used as leverage, with the potential for de-escalation if either side chooses to back down.
The emergence of China’s DeepSeek, a low-cost AI model that requires less advanced chips, initially sparked a global selloff in tech stocks. Investors raised concerns about the future of Western investments in chipmakers and data centres. Nvidia, a leader in the sector, saw its market value plummet by nearly $600 billion, marking the largest one-day loss in company history. However, since then, tech stocks, particularly in Europe, have rebounded, with some investors turning to a 160-year-old economic theory to explain the market’s recovery: the Jevons Paradox.
The Jevons Paradox, proposed by economist William Stanley Jevons, suggests that as a resource becomes more efficient, its demand can actually increase. In the context of AI, the paradox argues that as AI technology becomes cheaper and more accessible, its use will likely expand. This idea is gaining traction among European investors, with some believing that lower AI costs could drive a new wave of investment in software and AI technologies, particularly in areas like data and inference.
Despite some scepticism, several fund managers have embraced the paradox as a reason for optimism in AI markets. The potential need for data centres and infrastructure to support AI growth remains a key focus, though the rise of more efficient software like DeepSeek has led some to question whether the sector will require as many resources as previously expected. While the long-term outlook remains uncertain, many see the reduction in AI costs as a catalyst for further investment and growth, especially in European companies that rely on AI technologies.
Not everyone is convinced, however, with some analysts pointing to Nvidia’s rapid stock rise as a sign that market dynamics may be more complex than the Jevons Paradox suggests. Nonetheless, for many, the falling costs of AI technology have reinforced the belief that demand for AI-related investments will continue to thrive.
President Donald Trump has temporarily halted a 25% tariff on Mexican imports following an agreement with President Claudia Sheinbaum. The deal, which grants a one-month pause, comes after Mexico pledged to deploy 10,000 National Guard troops to curb drug trafficking and illegal migration at the US border.
The agreement follows Trump’s decision to impose tariffs on Mexico, Canada, and China as part of a broader strategy to pressure foreign governments on trade and security. While the pause provides temporary relief, negotiations will continue, led by senior US officials including Secretary of State Marco Rubio. Trump remains optimistic that a long-term solution can be reached.
Financial markets responded positively to the news, with US stocks recovering from early losses and the Mexican peso stabilising. Bitcoin, which had slumped to $91,178, rebounded to nearly $98,000 as investors adjusted to the easing tensions. However, concerns remain over impending tariffs on Canada and China, which could still trigger economic uncertainty.
Indian entrepreneur Bhavish Aggarwal is investing $230 million into Krutrim, an AI startup he founded, as part of India’s push to establish itself in the global AI market. The company, which develops large language models (LLMs) for Indian languages, aims to raise a total of $1.15 billion by next year, with Aggarwal seeking additional funding from external investors.
In a significant move, Krutrim has made its AI models open source and announced plans to build India’s largest supercomputer in partnership with Nvidia. The firm recently introduced Krutrim-2, a 12-billion parameter model that has demonstrated strong performance in Indian language processing and code generation. It has also launched BharatBench, a new evaluation framework designed to assess AI models’ proficiency in Indian languages.
The investment follows the launch of Krutrim-1, India’s first large language model, and aligns with broader efforts to position India as a key player in AI, traditionally dominated by the US and China. Krutrim has also begun hosting Chinese AI lab DeepSeek’s models on domestic servers, signalling India’s growing role in the AI ecosystem. With a supercomputer set to go live in March, the company is poised for rapid expansion in the coming months.
Dubai-based startup Qeen.ai has raised $10 million in a seed funding round led by Prosus Ventures to scale its AI-powered e-commerce platform. Founded by former Google and DeepMind researchers, the company develops autonomous AI agents that help businesses automate marketing, content creation, and sales, allowing smaller merchants to compete more effectively without relying on costly agencies or ad expertise.
Qeen.ai’s proprietary AI technology, which continuously learns from consumer interactions, has already generated over a million product descriptions and helped boost merchant sales by 30%. Its AI-powered Dynamic Content agent personalises online shopping experiences, adjusting marketing strategies in real time based on user behaviour. Since launching in mid-2024, the platform has served 15 million users, with notable clients including Dubai Store, 6th Street, and Jumia.
The startup plans to use the fresh funding to expand its team and enhance its AI capabilities, focusing first on the Middle East before expanding globally. With the e-commerce market in the MENA region expected to reach $50 billion by 2025, Qeen.ai aims to establish itself as a key player in AI-driven retail automation.
Paris-based startup Neuralk-AI has raised $4 million to develop AI models tailored for structured data, such as databases and spreadsheets. Unlike traditional AI, which excels at unstructured content like images and text, Neuralk-AI’s approach aims to help businesses extract deeper insights from their existing data warehouses. Retailers, in particular, could benefit from its models, using AI to optimise inventory, detect fraud, and refine customer recommendations.
The company, co-founded by Alexandre Pasquiou, plans to launch its AI models as an API for data scientists in commerce-focused industries. By automating complex workflows and enhancing data analysis, Neuralk-AI hopes to offer a more efficient alternative to traditional machine learning tools. The startup is already collaborating with major French retailers such as E.Leclerc and Auchan to test its technology.
Backed by Fly Ventures, SteamAI, and industry leaders including Hugging Face’s Thomas Wolf, Neuralk-AI is working towards becoming the leading AI solution for structured data. The first version of its model is expected to launch in the coming months, with a full benchmark release planned for later this year.
