Nvidia’s Jensen Huang Advocates for ‘Sovereign AI’ in Kazakhstan Amid Global AI Competition
Nvidia CEO Jensen Huang is promoting the concept of ‘sovereign AI’ in Kazakhstan, urging the nation to develop its domestic computing infrastructure using Nvidia’s chips. This initiative comes as Kazakhstan positions itself as a battleground in the US-China competition for artificial intelligence.
During a fireside chat in Astana on October 20 with Kazakh AI and digital development minister Zhaslan Madiyev, Huang emphasized that AI is transforming every industry, a change that ‘affects every single person and country.’
Huang stated that Nvidia provides the necessary computing foundation for AI hubs, which require significant resources, especially electricity and data.
Kazakhstan aims to utilize its extensive energy reserves to establish itself as a regional computing hub by creating what Huang refers to as ‘AI factories.’ The country possesses an estimated 25.6 billion tonnes of coal reserves, among the largest globally, according to the US Energy Information Administration.
‘Because you have so much energy, instead of just exporting energy in the future, you can transform the energy into intelligence and export intelligence,’ Huang remarked.
In June, Kazakhstan unveiled a US$10 billion plan in collaboration with Nvidia and American AI infrastructure developer Firebird to construct a computing hub in Ekibastuz, a key coal-mining and power-generation center.
The project plans to deploy around 100,000 Nvidia graphics processing units (GPUs), with a total power capacity of up to 1 gigawatt. The initial 50-megawatt facility is set to open in June 2024, with Madiyev estimating that the hub could eventually generate at least US$3 billion in annual computing export revenue.
However, the region faces significant structural challenges. The Carnegie Endowment for International Peace warned in April that Central Asia’s digital ambitions could be hindered by unreliable power grids, limited international connectivity, and regulatory obstacles.
Huang, Nvidia’s 63-year-old founder, has been traveling extensively over the past year as a prominent advocate for AI. He has urged governments worldwide to build sovereign AI infrastructure using Nvidia’s chips to maintain control over their data and cultural capabilities.
Just two days before his appearance in Astana, Huang encouraged European nations to develop their domestic AI infrastructure during Nvidia’s GPU Technology Conference in Berlin, where the company introduced new modular data-center technology.
Despite Huang’s global promotional efforts, skepticism is growing regarding the financial sustainability of the AI sector. Ken Griffin, billionaire founder of hedge fund Citadel, warned that the AI industry is ‘almost certainly’ in a bubble, raising concerns about an oversupply of computing hardware that could lower prices and jeopardize the financial viability of large projects.
His comments align with earlier warnings from Bridgewater Associates founder Ray Dalio, who labeled the current enthusiasm as a ‘classic bubble’ nearing its peak. The Bank of England also cautioned that rising debt associated with AI infrastructure could exacerbate losses if profitability expectations do not materialize.
Huang dismissed bubble concerns, telling CNBC that demand for specialized AI cloud providers remains ‘off the charts.’ He attributed growth bottlenecks to a lack of working capital across the sector.
‘What’s missing … is the working capital to fuel that growth, because there are so many demands across so many sectors of AI,’ Huang explained.
Kazakhstan’s AI initiative also underscores Central Asia’s increasing significance in the technological rivalry between the US and China. Sharing a roughly 1,700km (1,050-mile) border with China, Kazakhstan has navigated both sides of the geopolitical divide.
In June, Astana joined Pax Silica, a US-led initiative aimed at securing AI supply chains, energy, chips, and data centers, before signing on as a founding member of the China-backed World Artificial Intelligence Cooperation Organisation the following month.
Meanwhile, Chinese tech companies have expanded their presence in Central Asia, pursuing partnerships in telecommunications, cloud infrastructure, and AI models in Uzbekistan and Kyrgyzstan.
Source: SCMP Tech (Asia)