Iran to Establish AI Investment Consortium and Two National AI Operators

TEHRAN (Iran News) According to Ehsan Chitsaz, Deputy Minister for ICT Strategy and Digital Economy Development, the ministry’s approach centers on facilitation rather than intervention, focusing on enabling private-sector growth and avoiding premature price regulation.

“Our vision is to double the size of Iran’s digital economy,” Chitsaz told IRNA. “The government should not own innovation—it must enable it. We are here to build trust, provide infrastructure, and reduce investment risks.”

Despite global expansion in the digital sector, Iran’s digital economy has declined in recent years. Data from the Statistical Center of Iran shows that its share of the national GDP dropped from 4.72% in 2021 to 4.2% in 2023.

“This downward trend shows we haven’t leveraged the full potential of the digital economy,” Chitsaz said. “While the world creates value from data and knowledge, we’ve been slow to adapt. The nations that master data—not oil or minerals—will be the wealthiest in the future.”

Once a regional leader in digital growth, Iran has now fallen behind its neighbors. The ICT Ministry aims to reignite digital innovation, retain domestic talent, and attract investment back into the country.

To accelerate development, the ministry plans to form an AI investment consortium to fund large-scale computing and data infrastructure. This initiative, approved by the ICT Regulatory Commission, will support the launch of two national AI operators, each with a minimum of 200 FLOPS (floating-point operations per second) of processing capacity.

These operators will serve as the backbone for domestic AI startups, industries, and digital services. The ecosystem will include several layers—from semiconductor production and data centers to AI algorithms and user-facing applications.

“A complete AI ecosystem must integrate hardware, data, algorithms, and human talent,” Chitsaz explained. “We’re coordinating with the Vice Presidency for Science and Technology to align infrastructure and innovation.”

The government will intervene only where the market fails, offering risk coverage, guaranteed purchases, and regulatory support to encourage private-sector investment.

Iran faces a shortage of skilled professionals in the digital sector. Under the Seventh Development Plan, the ministry aims to train 500,000 specialists in cooperation with the Vice Presidency for Science and Technology.

Training will take place through the “Digital Iran” program, which emphasizes hands-on mentorship and work experience to align skills with real market needs. “We already see young people gaining digital skills outside universities and achieving strong incomes,” Chitsaz said. “We must support this trend rather than constrain it.”

The ministry is also pursuing simultaneous expansion of fiber-optic broadband and 5G mobile networks. A national plan seeks to establish 10 million fiber connections, marking one of the largest telecom projects in Iran’s history.

Replacing copper cables with fiber will dramatically improve internet speed and reliability. “We are witnessing a historic shift from copper to light,” Chitsaz said. “Citizens should feel the difference in everyday life.”

In parallel, the ministry is securing financing for 5G deployment despite international restrictions. Within two years, widespread 5G access is expected to transform connectivity and enable new AI-driven services.

Chitsaz warned against over-regulation and excessive licensing by traditional sectors trying to limit digital platforms. “Innovation depends on breathing space,” he said. “Our goal is to give the digital economy room to grow while maintaining fair oversight.”

The ministry’s Digital Economy Development Charter aims to align regulations with innovation rather than restrict it. The upcoming Data Governance Framework and Personal Data Protection Bill are also designed to support AI growth while protecting user privacy.

Acknowledging widespread dissatisfaction with internet restrictions, Chitsaz said the government has submitted a de-filtering action plan to the Supreme Council of Cyberspace.

“Excessive filtering has harmed network security, reduced service quality, and even turned user devices into attack vectors,” he warned. The ministry plans to strengthen domestic messaging platforms by integrating essential daily services to encourage adoption, while ensuring users can safely access international tools when needed.

He stressed that the ICT Ministry’s role is to regulate competition, not prices, adding that past government price controls had “destroyed the value of telecom firms” and hindered investment.

To help telecom operators purchase modern equipment, the ministry has opened new credit lines and coordinated with the National Financing Council. These measures aim to resolve long-standing problems in international procurement caused by sanctions.

Chitsaz also emphasized that any decisions affecting internet access—such as shutdowns—must be made with full awareness of their economic and social consequences. The ministry is engaging policymakers to prevent hasty decisions that could harm millions of citizens and businesses.

The government is finalizing a national framework for digital regulation, focusing on cross-sector collaboration to avoid fragmented policymaking. “We’re shifting from isolated, sector-based control toward integrated digital governance,” Chitsaz said.

A high-level meeting with President Masoud Pezeshkian is scheduled soon to discuss digital economy reforms, AI strategy, and the path toward more transparent and coordinated regulation.

“If we align investment, policy, and trust,” Chitsaz concluded, “Iran can once again become a digital leader in the region. The AI consortium and national operators are only the beginning of that journey.”