Searching for the American Investment

Government contradictions and unanswered questions over the €500,000

Header Image

Was the €500,000 contribution made or not? Does such a person actually exist and, if so, who is the “American businessman” mentioned in the controversial video? Despite government clarifications, the questions not only remain unanswered but continue to multiply.

For a second consecutive day, attention has focused on the alleged €500,000 investment that, according to implications made in the disputed video, was carried out in Cyprus by an American businessman. Despite explanations offered by the government, uncertainty persists, as different versions of the same amount coexist in public discourse, without a single, fully documented account having been provided so far.

How the issue emerged

The issue came to light following the release of excerpts from a teleconference held on 9 December, during discussions with a purported investor. In the video, the now former Director of the Office of the President of the Republic, Charalambos Charalambous, is heard referring to a contribution by an American businessman to the Republic of Cyprus.

Specifically, he states:

“You can come and say, okay, we want to do this work. And we also have this amount of money for Corporate Social Responsibility purposes. Just to give you a small example. Recently, an American, who has very good relations with the country, wanted to make a contribution to the government, to the country, of €500,000.”

Political fallout and intervention by MPs

Following the video’s publication, the issue quickly took on political dimensions, centred on whether such a contribution was in fact made and, if so, where the money ended up.

AKEL MP Christos Christofides intervened publicly, citing a statement by the Auditor General of the Republic that no such contribution has been recorded in the state’s accounts. Through a series of posts, Christofides questioned how a €500,000 contribution could be referenced without appearing in official records and called for clarification as to which programme the reference concerned.

He also linked the issue to the press conference of 9 January 2026, held the day after the video’s circulation, noting that no reference had been made at that time to any donation or contribution of this scale.

Government response and the “ChatGPT for Education” programme

In response, Deputy Minister for Research, Innovation and Digital Policy Nikodimos Damianou clarified that no donation or financial contribution of €500,000 has been paid to the state and, therefore, no such record could exist in the accounts of the Auditor General.

According to the Deputy Minister, the reference to the €500,000 concerns a private initiative linked to the promotion of a pilot educational programme in Artificial Intelligence. In a public post, Damianou stated that the amount relates to a private initiative aimed at promoting AI education in schools, with an educational and social character, and that the matter is being coordinated at government level.

He further specified that the reference concerns the programme “ChatGPT for Education”, for which the government has been in advanced discussions with OpenAI since September 2025. He also recalled that during the press conference of 9 January 2026, reference was made to the estimated cost of the programme, assessed at around €0.5 million, without further details, as the process remains ongoing.

What is known about the programme

Based on the limited information disclosed so far, the programme is expected to use generative AI tools for educational purposes, aiming to familiarise students and teachers with the use of AI in the school environment.

The programme is reportedly designed as a pilot, initially targeting specific school units, mainly within technical education. It would involve specially configured digital tools based on OpenAI technology, used either as learning support tools or as a means of introducing core AI concepts. There has also been reference to the need for training teachers to ensure the tools are used in a pedagogically sound and safe manner.

Parliamentary scrutiny

The issue is expected to be discussed tomorrow by the House of Representatives’ Audit Committee, in the context of a debate triggered by the Audit Office’s report on the Independent Social Support Agency. Within this framework, questions related to the alleged €500,000 investment or contribution are also expected to be raised.

Questions that remain unanswered

Based on the above, several specific questions arise:

  1. Was the €500,000 contribution made or not? If it was, why does it not appear in the records of the Auditor General of the Republic?

  2. If this is an investment rather than a donation, what type of investment is it? When was it decided, where is it directed, and what exactly does the amount cover?

  3. Who is the “American businessman” referred to in the video? Is it an individual, a company, or OpenAI itself?

  4. How can the timeline contradiction be explained? Mr Charalambous refers to a contribution that appears to have already been made, while the Deputy Ministry refers to an investment that may materialise in the future. If the amount concerns future costs under discussion, why was it initially presented in a way that created the impression of a completed contribution?

  5. Why were clarifications not provided immediately? Since the “ChatGPT for Education” programme was said to be under discussion on 9 January, why was it not explained from the outset, following the video’s publication the next day, that the €500,000 amount related to this framework, instead of taking 11 days for this to become clear?

  6. How will the estimated €0.5 million cost be covered? During the 9 January press conference, reference was made to an “estimated cost”, without clarifying whether this would burden the state budget or be covered through investment or another form of contribution.

Attempts to obtain answers

The newspaper sought answers to these questions from the government, contacting both the Ministry of Education, given that the programme would be implemented in schools if approved, and the Deputy Ministry for Research, Innovation and Digital Policy.

The Ministry of Education referred the matter to the Deputy Ministry of Innovation, which simply stated that the Deputy Minister did not wish to give the issue further publicity.

One final question

In light of all the above, one final, unavoidable question arises: was the “ChatGPT for Education” programme ultimately used as a framework to retrospectively explain an amount for which it remains unclear if, when and how it was allocated?

A question that makes the need for full and clear information even more pressing.

Comments Posting Policy

The owners of the website www.politis.com.cy reserve the right to remove reader comments that are defamatory and/or offensive, or comments that could be interpreted as inciting hate/racism or that violate any other legislation. The authors of these comments are personally responsible for their publication. If a reader/commenter whose comment is removed believes that they have evidence proving the accuracy of its content, they can send it to the website address for review. We encourage our readers to report/flag comments that they believe violate the above rules. Comments that contain URLs/links to any site are not published automatically.