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Sberbank Plans AI Collaboration with China Amid DeepSeek’s Rise

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Sberbank, Russia’s largest bank, is set to collaborate with Chinese researchers on artificial intelligence (AI) projects, a top executive revealed, following the groundbreaking success of China’s DeepSeek AI model. DeepSeek, which has created a highly cost-effective AI model, has shaken up the tech landscape, challenging the dominance of U.S. companies like Nvidia. This move reflects the growing collaboration between Russia and China, which share a “no limits” strategic partnership, particularly in the realm of AI.

Under CEO German Gref, Sberbank has transitioned from its bureaucratic past as a Soviet-era state savings bank into a leader in AI innovation. In 2023, the bank launched its own AI model, GigaChat, and is now focusing on joint research projects with China. Alexander Vedyakhin, Sberbank’s First Deputy CEO, confirmed the plans but refrained from naming specific Chinese research partners. The partnership is expected to strengthen the scientific ties between the two countries, in line with Russia’s broader push to expand cooperation with China in areas such as military AI applications.

DeepSeek’s innovative, low-cost AI models have caused a stir globally, with investors now viewing them as serious competition for U.S. tech giants. The potential Russia-China AI alliance could further disrupt the global AI sector, especially as the race between China and the U.S. for AI supremacy intensifies. The shared vision of Presidents Vladimir Putin and Xi Jinping, who view the West as in decline, could fuel further collaboration in emerging technologies like AI, quantum computing, and synthetic biology.

Despite facing sanctions, Russia is eager to build AI partnerships with China and other BRICS nations to counterbalance U.S. dominance. However, Russia’s own AI progress remains difficult to gauge, as some projects are classified. Additionally, both Russia and China struggle with limited domestic computing power due to sanctions, prompting efforts to seek alternative methods to stay competitive in the AI race.

Sberbank’s comparison of its GigaChat MAX model to DeepSeek’s offerings reveals that while DeepSeek excels in scientific tasks, GigaChat remains competitive in the banking sector. Vedyakhin acknowledged DeepSeek’s success as proof that quality AI models can be built without massive investments in infrastructure, such as the U.S. megaproject Stargate. Sberbank, like DeepSeek, has made most of its AI platforms publicly accessible, including its text-to-image model, Kandinsky, and GigaChat Lite, which reflects a more transparent approach than that of OpenAI, drawing a large community.

 

Russian TV Airs Fake Report on DeepSeek’s ‘Soviet Code

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A fabricated Russian news story claiming that China’s DeepSeek AI app is based on secret Soviet code has made its way onto state TV, illustrating a wave of nostalgia in Russia for a bygone era of technological might. The hoax originated from Panorama, a satirical fake news outlet that openly publishes fictional content. The fake report featured an interview with DeepSeek’s founder, Liang Wenfeng, who was quoted as praising Soviet-era programmers and their alleged role in developing the code for the AI startup.

According to the spoof, the DeepSeek code was allegedly created in 1985 by a team led by Viktor Glushkov, a renowned Soviet scientist credited with developing the first personal computer in the Soviet Union in the 1960s. Glushkov was also behind the creation of a data-processing network designed to manage the Soviet planned economy, which some argue contained early features of artificial intelligence.

Despite its fictional nature, the story gained traction, appearing on Rossiya One, a national state television channel, as if it were genuine news. It was further amplified on social media, with prominent figures like Communist Party leader Gennady Zyuganov sharing the report, calling the Soviet Union “the most educated and advanced country”—a post that was later deleted.

Russia’s domestic AI landscape, however, lags behind its global competitors, ranking 31st out of 83 nations for AI implementation, investment, and innovation, according to the Global AI Index by UK-based Tortoise Media. Russia not only trails technological giants like the United States and China but also faces stiff competition from other BRICS members like India and Brazil. Despite boasting two significant domestic AI models, Russia closely monitors China’s AI advancements, particularly the success of DeepSeek’s recent models, which have shaken up the global tech scene.

South Korea Blocks DeepSeek Amid Security Concerns, Following Global Warnings

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South Korea’s industry ministry has temporarily blocked employee access to the Chinese artificial intelligence startup DeepSeek due to security concerns, marking the latest move by governments to restrict the use of certain AI services. A ministry official confirmed on Wednesday that the ban was implemented in response to growing apprehension surrounding generative AI technologies.

On Tuesday, the South Korean government issued a notice urging caution among ministries and agencies regarding the use of AI services such as DeepSeek and ChatGPT in work-related tasks. The notice followed earlier actions by state-run entities, with Korea Hydro & Nuclear Power confirming it had blocked access to DeepSeek earlier this month.

The country’s defense ministry also took action, blocking access to DeepSeek on military computers, while the foreign ministry restricted its use on devices connected to external networks, according to Yonhap News Agency. However, the foreign ministry did not provide further details regarding the specific security measures taken.

DeepSeek, which was not immediately available for comment, joins a growing list of companies facing scrutiny over potential security risks. Both Australia and Taiwan have recently banned the AI service from government devices, citing similar security concerns. In January, Italy’s data protection authority ordered DeepSeek to block its chatbot after the company failed to address privacy issues raised by regulators.

In addition to government actions, private companies in South Korea are also taking precautions. Kakao Corp, a major South Korean chat app operator, instructed employees to refrain from using DeepSeek due to security fears, particularly following its partnership with OpenAI. Other South Korean tech giants, including SK Hynix and Naver, have also restricted or limited access to generative AI services, citing concerns about data security and privacy.

The scrutiny of DeepSeek follows the company’s claim that its AI models are on par with or superior to products developed in the U.S., while being significantly cheaper to produce. South Korea’s information privacy watchdog has announced plans to inquire with DeepSeek about its user data management practices, adding another layer of regulatory attention on the Chinese startup.