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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.

 

Biden’s Late Moves on China, Russia, AI May Mostly Boost Trump

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As President Joe Biden nears the end of his term, his administration has ramped up a series of foreign policy actions aimed at challenging China and Russia while promoting advances in artificial intelligence (AI). These last-minute measures include imposing new sanctions on Russian oil producers, restricting semiconductor chip exports, and addressing Chinese shipbuilding practices, among others. However, some analysts and political strategists believe that these efforts might inadvertently strengthen the incoming Trump administration, giving it fresh leverage in future negotiations.

Biden’s Final Measures and Their Potential Impact on Trump

In a flurry of activity, Biden’s team has worked to implement significant policies just before the presidential transition. Among these, the administration has sanctioned Russian oil producers and shipping companies, restricted Chinese access to high-tech semiconductor chips, and even laid the groundwork for AI centers on federal land. Despite these moves, critics argue that Biden’s actions may ultimately benefit Donald Trump, who is set to assume office in January.

Biden’s actions may help Trump fulfill key campaign promises, such as raising tariffs on China, enhancing sanctions on Russia, and taking a more aggressive stance in foreign policy. Robert Rowland, a professor of presidential rhetoric at the University of Kansas, remarked that Biden’s push to shape his legacy in the final days may give Trump a head start. Rowland noted, “If Biden wanted to burnish his legacy, he should have been doing these things a year ago. It’s too late now.”

Strategic Actions in China and Russia

One of the key actions taken by the Biden administration was an investigation into Chinese shipbuilding practices, which concluded that Beijing’s support for its shipbuilders, forced technology transfers, and intellectual property theft put U.S. companies at a disadvantage. While Biden may take credit for addressing these issues, the findings also create a legal basis for Trump to impose higher tariffs on China, fulfilling his trade-related promises.

Similarly, Biden’s new sanctions on Russian oil, intended to provide leverage in peace negotiations, could give Trump an advantage. While the Biden administration has framed the sanctions as a way to strengthen the U.S.’s negotiating position in Ukraine, Trump’s team may be able to use this economic pressure to demand a more favorable deal with Russia. This could also place Trump in a position to manage potential political fallout, including rising oil prices and gasoline costs in the U.S., a consequence that Biden officials are hoping won’t negatively impact American consumers too severely.

Biden’s Coordination with Trump’s Transition Team

Despite political tensions, Biden’s team has made efforts to ensure a smooth transition by briefing Trump’s team on ongoing matters, including Russian sanctions, AI controls, and cyber-espionage. National security adviser Jake Sullivan has indicated that the Biden administration’s recent actions have been aimed at ensuring that Trump’s team has tools to work with once they take office. This approach appears to be part of a broader strategy by Biden’s team to set up the incoming administration for success while minimizing potential conflicts.

Long-Term Political Implications

Though Biden’s policies may be aimed at reinforcing his legacy, they may end up providing Trump with opportunities to capitalize on the situation in ways that benefit his administration’s objectives. With just days left in his presidency, Biden’s final moves may be reshaping the strategic landscape, but they may also end up strengthening Trump’s political standing on the global stage.

Putin Orders Enhanced AI Cooperation with China Amid Sanctions

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Russian President Vladimir Putin has directed the government and the country’s largest bank, Sberbank, to strengthen cooperation with China in the field of artificial intelligence (AI). This order, which was published on the Kremlin’s website on Wednesday, comes three weeks after Putin revealed plans for Russia to collaborate with BRICS nations and other global partners on AI development.

The directive to Sberbank, the leading institution driving Russia’s AI initiatives, emphasizes the need to further cooperation with China in technological research and development in AI. This move is seen as part of Russia’s strategy to overcome technological barriers imposed by Western sanctions, which have significantly hindered Russia’s access to essential microchips and AI resources, crucial for sustaining its ongoing conflict with Ukraine.

In 2023, Sberbank CEO German Gref admitted that the scarcity of graphics processing units (GPUs), the critical hardware for AI, posed one of the biggest challenges for Russia. The sanctions have disrupted the supply of GPUs, which are primarily produced by Western companies, thus limiting Russia’s ability to advance in AI technology.

By deepening ties with non-Western nations, Russia aims to challenge the United States’ dominance in the AI sector, which is considered one of the most strategic and transformative technologies of the 21st century. Putin also announced the formation of an AI Alliance Network on December 11, intended to bring together experts from BRICS countries and other interested nations to foster innovation in this field.

Currently, Russia ranks 31st out of 83 countries in terms of AI implementation, innovation, and investment, according to Tortoise Media’s Global AI Index. This places Russia behind not only the United States and China but also fellow BRICS members such as India and Brazil.