{
  "id": 17542995,
  "title": "US or China? Why Kazakhstan refuses to pick sides as it eyes AI revolution",
  "url": "https://urgent.news/2026/11/01/us-or-china-why-kazakhstan-refuses-to-pick-sides-as-it-eyes-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-01T06:00:13.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/tech/big-tech/article/3372785/us-or-china-why-kazakhstan-refuses-pick-sides-it-eyes-ai-revolution"
  },
  "original_language": "en",
  "account": "As I drove along the spacious avenues of Astana, the capital city of Kazakhstan, I noticed the growing presence of Chinese commercial establishments. Chinese vehicles, such as those from BYD and Changan, were increasingly present in the streets, having made significant strides in the domestic market that was once dominated by South Korean brands like Hyundai and Kia. However, the main reason for my visit to this energy-rich region in Central Asia was the presence of an American giant, Nvidia CEO Jensen Huang. He was in town for a fireside chat with the Deputy Prime Minister to discuss \"sovereign AI\" and its potential impact on Kazakhstan's future. This high-profile visit highlighted Astana's ambition to become a regional computing hub. Kazakhstan, known for its vast reserves of oil, natural gas, and uranium, is leveraging its extensive electricity supply to establish a foothold in the global artificial intelligence boom. Nvidia CEO Huang has frequently described AI as a new industrial revolution, envisioning data centers as \"AI factories\" that consume electricity and compute to generate digital intelligence. Kazakhstan sees an opportunity in this trend, aiming to become a hub for selling computing power rather than traditional goods like clothing, smartphones, and cars, which drove China's manufacturing boom. The economic benefits of this strategy include utilizing Kazakhstan's abundant power reserves to fuel server farms and export AI services. Beyond the economic appeal, Kazakhstan also aspires to cultivate homegrown engineering talent and support domestic tech firms. The government-backed Alem.ai International Artificial Intelligence Centre serves as a testament to this effort. Within the academy, various initiatives have been established, such as Tomorrow School, a free coding academy that emphasizes project-based, peer-to-peer learning in AI. Additionally, TUMO Astana offers robotics and digital creativity courses to local teenagers. These grassroots educational programs contrast with the large-scale, multi-billion-dollar initiatives associated with Nvidia's appearance. While the establishment of data centers can be relatively swift and powered by existing grids, the development of a robust talent pool, business ecosystem, and sustained innovation can take decades. Kazakhstan must navigate this challenge while dealing with the intensifying rivalry between China and the United States in the tech sector. China's manufacturing dominance in electric vehicles and consumer electronics, coupled with the United States' leadership in advanced semiconductors and AI architecture, presents a double-edged sword for Kazakhstan, which shares a 1,780-kilometer (1,100-mile) border with China. Despite the proximity to China, Astana is strategically adopting a middle-ground approach, capitalizing on both superpowers to bolster its technological capabilities. This approach mirrors a previous visit I had made to New Delhi during the Bloomberg New Economy Forum, where similar Sino-American tensions were a recurring theme. Singapore's Deputy Prime Minister, Gan Kim Yong, emphasized the importance of preserving economic ties despite geopolitical fragmentation, while Indian Commerce Minister Piyush Goyal advocated for strengthening trade relations with China while maintaining close ties with Washington. The central dilemma faced by middle powers like Kazakhstan lies in leveraging the respective strengths of the world's two largest economies without becoming overly reliant on either. China's rise offers both a blueprint and a cautionary tale for Kazakhstan. Building a lasting industrial powerhouse requires substantial infrastructure investments, deep supply-chain integration, and a prolonged focus on talent training. While Kazakhstan's journey to transform its energy reserves into a sustainable AI ecosystem remains uncertain, it is evident that Astana is determined to assert its presence in this new industrial era as two global superpowers vie to shape its future.",
  "summary": "Driving along the wide boulevards of Astana during a recent trip to the Kazakh capital, signs of China’s growing commercial footprint were everywhere. Chinese cars were becoming a common sight on the streets here, as brands from BYD to Changan made aggressive inroads in a market once dominated by South Korea’s Hyundai and Kia, said the driver who picked me up from the airport in a gleaming…",
  "key_points": [
    "Kazakhstan aims to become AI hub by leveraging electricity supply.",
    "Nvidia CEO Huang visits Astana for sovereign AI discussion.",
    "Kazakhstan balances ties with US and China amid tech rivalry."
  ],
  "editors_take": "Astana is attempting to pivot from a commodity-based economy to a digital powerhouse by leveraging its energy reserves to navigate the intensifying technological rivalry between China and the United States.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}