Turkey owns 1,200 AI startups about 70% of which were founded after 2020
Turkey’s artificial intelligence (AI) ecosystem is expanding rapidly, fueled by a surge in global investment, a growing startup base and an increasingly influential diaspora, according to the Turkish Artificial Intelligence Ecosystem and Global Impact Report 2025 .
Having penned by AI Startup Factory (YZF), the report says global AI investment reached a historic high in 2025 despite a decline in the number of deals, signaling a shift toward larger funding rounds for more mature companies.
Around 1.200 AI startups with $100,000 average investment
Turkey currently hosts 1,188 active AI startups, about 70% of which were founded after 2020. An additional 274 AI startups led by Turkish founders operate abroad, primarily in the United States and Europe, highlighting the growing influence of the Turkish AI diaspora, according to the report. Over the past year, two diaspora-led companies achieved unicorn status, strengthening Turkey’s global footprint in B2B AI solutions. (By the way I have a story here about Sezen Aksu and her song how AI is used)
The report reveals that Turkey’s startup ecosystem remains heavily early-stage. Median investment sizes for Turkey-based AI startups stand at around $100,000, compared with $2.4 million for diaspora companies, underscoring a significant gap in access to capital and scale. Still, 180 Turkish AI startups secured early-stage funding in 2024 and 2025, signaling strong growth potential in the years ahead, the report noted.
Most Turkish AI startups focus on enterprise solutions. About three-quarters of both domestic and diaspora ventures target B2B markets, while fewer than 10% concentrate solely on consumer applications. However, Turkey’s strong background in mobile game development has enabled several consumer-focused AI application studios to achieve rapid commercialization and global reach.
The report also highlights a disconnect between startups and large institutions. While more than half of surveyed organizations say they have adopted AI in their operations, only 6.25% report working with local AI startups. A shortage of skilled AI talent was identified as the largest obstacle to broader adoption, surpassing regulatory uncertainty and data access concerns, the report emphasized.
AI Startup Factory invested in 30 startups and supports a portfolio of 52 companies
AI Startup Factory (YZF), a strategic investment fund and ecosystem catalyst founded in 2023, is cited as a key driver of growth. The fund has invested in 30 startups and supports a broader portfolio of 52 companies, including one unicorn. Portfolio companies have raised a combined $546 million, with women-founded startups accounting for nearly one-quarter of investments.
Looking ahead, the report says Turkey’s challenge is to move from being primarily an AI technology consumer to becoming a producer of globally competitive solutions. While competing directly in AI infrastructure and foundational models remains difficult, experts emphasize that application-level innovation and global-first product strategies offer significant opportunities for Turkish entrepreneurs.
The report concludes that AI is no longer an emerging technology but a central force reshaping economies and business models worldwide, and that Turkey is well positioned to play a larger role if investment, talent development and institutional collaboration accelerate.
(Opening image: ChatGPT)
