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Top 25 Cities for AI Startups in South America in 2025

Top 25 Cities for AI Startups in South America in 2025

The AI landscape in South America is rapidly evolving, with numerous cities emerging as major hubs for innovation, investment, and talent in artificial intelligence. Here is a detailed overview of the top 25 cities in South America for AI startups in 2025, highlighting their strengths, core focus areas, talent pools, and notable players in the ecosystem.
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1. São Paulo, Brazil

Ecosystem Strength: Often called the "Silicon Valley of Latin America," it boasts the largest tech hub in South America, with a very dynamic tech and innovation culture. AI Focus: Strong in AI, fintech, e-commerce, health tech, and agritech. Talent Pool: Home to the largest tech talent pool in Latin America, with over 1.5 million IT professionals. Investment: Led the region with $6.8 billion in venture capital in 2021. Major Players: Headquarters for companies like Nubank, iFood, Gympass, and MercadoLibre. Innovation: Ranks #1 in Latin America for knowledge, performance, and funding. Huntly.ai

2. Mexico City, Mexico

Ecosystem Strength: Premier tech hub in Mexico with a vibrant startup ecosystem. AI Focus: Strong in fintech, e-commerce, and software development. Talent Pool: Boasts the largest tech talent pool in Latin America with 700,000 IT professionals. Investment: Experienced a 965% growth in AI companies between 2018 and 2024, with over US$500 million in investment. Major Players: Home to Google, Amazon, Microsoft and many unicorns. Teilur Talent

3. Buenos Aires, Argentina

Ecosystem Strength: Long-standing hub of tech innovation with a strong educational system, and epicenter of Argentina's startup activity. AI Focus: Increased specialization in fintech, agritech, and artificial intelligence. Talent Pool: Has over 115,000 tech professionals and has the highest English proficiency in Latin America. Major Players: Home to Mercado Libre, and offices for Globant and Despegar. Teilur Talent
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4. Santiago, Chile

Ecosystem Strength: Known for a well-functioning economy and policies favorable to investment, and a strong network of accelerators. AI Focus: Focuses on cloud and IoT, has high levels of AI adoption. Talent Pool: Local developers have a high level of English proficiency. Major Players: Becoming a hub for companies looking to tap into cost-effective talent. Innovation: Recognized as a leader in AI readiness in the region. Jalasoft

5. Medellín, Colombia

Ecosystem Strength: Significant technological center, growing fast. AI Focus: Growing focus on software development and IT services. Talent Pool: A rising tech talent pool of software developers and IT professionals. Government Support: Government support through funding and tax benefits. Huntly.ai

6. Guadalajara, Mexico

Ecosystem Strength: Called the "Silicon Valley of Mexico" with a strong startup ecosystem. AI Focus: Strong in fintech and health tech. Talent Pool: Many strong technology-oriented universities. Major Players: Home to big tech players like IBM and Oracle. Alcor BPO

7. Bogotá, Colombia

Ecosystem Strength: One of the main cities in Latin America for startup development. Talent Pool: Growing pool of software developers and IT professionals. Teilur Talent

8. Lima, Peru

Ecosystem Strength: Emerging as a hub for tech innovation. AI Focus: Growing startup focus on e-commerce and fintech. Talent Pool: Booming talent pool with a software industry increase of 10.8%. Jalasoft

9. Montevideo, Uruguay

Ecosystem Strength: Software market is expected to reach $308 million in 2028, and the IT services market will peak at $1 Billion in 2029. AI Focus: Highest proportion of programmers skilled in AI tech in Latin America. Talent Pool: Home to 85% of IT professionals in the country. cepal.org

10. Florianópolis, Brazil

Ecosystem Strength: Emerging tech hub in Brazil. Teilur Talent
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11. Monterrey, Mexico

Ecosystem Strength: Strong tech hub with innovation parks and investors. Strong in Edtech. Teilur Talent

12. Belo Horizonte, Brazil

Ecosystem Strength: Located in the heart of Brazil, gaining attention from startups like Google. It's a growing startup culture. cepal.org

13. Curitiba, Brazil

Ecosystem Strength: Ranks as #7 Latin American Ecosystem. Startupgenome

14. San José, Costa Rica

Ecosystem Strength: An emerging hub with a highly educated workforce and strong English skills. Teilur Talent

15. Cochabamba, Bolivia

Ecosystem Strength: Home to 80% of Bolivia's software development. Jalasoft
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16. Porto Alegre, Brazil

Ecosystem Strength: Emerging hub for tech innovation. Startupgenome

17. Rosario, Argentina

Ecosystem Strength: Growing tech and startup ecosystem. Talent Pool: High level of education and technical skills.

18. Asunción, Paraguay

Ecosystem Strength: Emerging as a new tech influence in the region. AI Focus: Focus on fintech and e-commerce innovations. Talent Pool: Increasing number of local experts and developers specializing in AI.

19. Valparaíso, Chile

Ecosystem Strength: Known for innovation and a growing tech ecosystem. AI Focus: Focus on IoT and cloud technologies. Talent Pool: Strong education in technological fields.

20. Barranquilla, Colombia

Ecosystem Strength: Prominent tech and startup environment, with government backing. Talent Pool: Rising numbers in software development and IT professionals.

21. Quito, Ecuador

Ecosystem Strength: Strong growth in software and tech startups, with innovative policies. Talent Pool: Increasing number of well-educated developers. Teilur Talent

22. Puebla, Mexico

Ecosystem Strength: Growing environment for startups, with government initiatives to boost the local tech landscape.

23. Córdoba, Argentina

Ecosystem Strength: Emerging as a significant player in the national tech scene.

24. La Paz, Bolivia

Ecosystem Strength: Emerging tech environment, focused on local innovation and growth.

25. Maracaibo, Venezuela

Ecosystem Strength: Increasing interest in technology and local startups despite economic challenges.
Key Data Points Across All Cities
  1. Growth Trends: The region is seeing a surge in technological innovation and development across various cities.
  2. AI Investment: Significant investments have been made in AI technologies, exceeding $1 billion annually in recent years.
  3. AI Talent: Universities are producing a growing number of AI and ML professionals who are often bilingual.
  4. Nearshore Outsourcing: Popular due to timezone advantages with the US and high-quality tech work.
  5. Government Support: Governments are providing funding, tax benefits, and programs to support young entrepreneurs.
  6. AI Adoption: Countries like Chile and Mexico show high levels of AI adoption and optimism about its impact.
  7. Fintech Leadership: A significant number of startups are focused on disrupting traditional financial services.
  8. Software Development: Growth in software development makes the region attractive for US and European companies.
  9. Focus on STEM: Investment in STEM education is producing highly skilled workers.
  10. Digital Transformation: The region is undergoing rapid digital transformation across multiple sectors.
Caveats
  • Data Variability: Different sources use different metrics and methodologies, so comparisons should be cautious.
  • Dynamic Landscape: The tech landscape is
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FAQ

Q: Which city is considered the "Silicon Valley of Latin America"?
A: São Paulo, Brazil is often called the "Silicon Valley of Latin America," due to its large and dynamic tech and innovation culture. Learn more about São Paulo's tech ecosystem.
Q: Which city in Mexico has the largest tech talent pool?
A: Mexico City, Mexico boasts the largest tech talent pool in Latin America with 700,000 IT professionals. Discover more about Mexico City's talent pool.
Q: Which city in Argentina is a major tech hub?
A: Buenos Aires, Argentina is a long-standing hub of tech innovation and accounts for 90% of Argentina's startup activity. Learn more about Buenos Aires.
Q: Where is the emerging tech hub in Brazil located?
A: Florianópolis, Brazil is an emerging tech hub in the country. Find out more about Florianópolis.
Q: Which city in Peru is becoming a hub for tech innovation?
A: Lima, Peru is emerging as a hub for tech innovation. Learn more about Lima.
Q: Which city in Chile is recognized for high levels of AI adoption?
A: Santiago, Chile is noted for its high levels of AI adoption and a strong network of accelerators. Discover more about Santiago.
Q: Which city in Colombia is a significant technological center?
A: Medellín, Colombia is a significant technological center, growing fast with government support through funding and tax benefits. Learn more about Medellín.
Q: Which city in Mexico is known as the "Silicon Valley of Mexico"?
A: Guadalajara, Mexico is called the "Silicon Valley of Mexico" and is known for its strong startup ecosystem. Discover more about Guadalajara.
Q: Which city in Uruguay has a high proportion of programmers skilled in AI tech?
A: Montevideo, Uruguay has the highest proportion of programmers skilled in AI tech in Latin America. Learn more about Montevideo.
Q: Which city in Colombia is a major city for startup development?
A: Bogotá, Colombia is considered one of the main cities in Latin America for startup development. Learn more about Bogotá.

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
2025-06-11 15:55 Top 25