Kazakhstan to sell $400M-$500M from oil fund in September

Kazakhstan to sell $400M-$500M from oil fund in September

Kazakhstan is set to sell $400 million to $500 million from its oil fund in September. This strategic move comes as the country continues to diversify its investment portfolio and capitalize on the global AI boom. The National Investment Corp. (NIC), which manages $3.4 billion, is leading the initiative. The NIC, under the leadership of CEO Serikzhan Rysbekov, plans to allocate capital into infrastructure funds that include investments in AI facilities this year [2].

The NIC's decision to sell a portion of the oil fund is part of a broader strategy to generate stronger returns in a challenging financial environment. The company aims to diversify its asset classes and reduce reliance on traditional oil investments. The move is also driven by the growing potential of the AI sector, with energy-rich states and venture capital firms betting billions on the sector despite volatility and surging valuations [1].

The NIC has previously declined to invest in venture capital due to inflated valuations but now sees AI as an attractive investment opportunity. The company plans to invest $50 million in one or two venture capital funds and explore secondary funds and private credit funds [1]. Nvidia's role in Kazakhstan's AI strategy is significant, with the company unveiling plans to implement light-based GPU interconnects by 2026, promising higher transfer rates and lower power consumption in next-gen AI data centers [2].

The global AI market is experiencing exponential growth. Nvidia's CEO Jensen Huang noted that the top four hyperscalers—Amazon, Alphabet, Meta, and Microsoft—alone plan to spend $600 billion annually on AI infrastructure, with the total market expected to reach trillions by the end of the decade [3]. This investment is a testament to the transformative potential of AI and underscores Kazakhstan's strategic decision to invest in this sector.

The sale of $400 million to $500 million from the oil fund is a significant step in Kazakhstan's effort to generate stronger returns and capitalize on the growing AI market. The country's collaboration with Nvidia and other tech giants positions it well to benefit from the AI revolution, despite the inherent risks.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-29/artificial-intelligence-boom-lures-kazakhstan-s-oil-wealth
[2] https://theoutpost.ai/news-story/nvidia-unveils-plans-for-light-based-gpu-interconnects-by-2026-revolutionizing-ai-data-centers-19465/
[3] https://www.barchart.com/story/news/34460649/nvidia-ceo-jenson-huang-amazon-oracle-alphabet-and-microsoft-alone-plan-to-spend-600-billion-per-year-on-the-ai-revolution