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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.

 

Russia Aims to Strengthen AI Capabilities Despite Western Sanctions

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Russia has the potential to bolster its position in global AI rankings by 2030, leveraging its talented developers and in-house generative AI models, according to Alexander Vedyakhin, the first deputy CEO of Sberbank. Despite Western sanctions targeting its technological infrastructure, Vedyakhin expressed confidence in Russia’s ability to achieve significant advancements in the field.

Speaking to Reuters, Vedyakhin emphasized the resilience of Russia’s AI sector, noting that while some developers left during the 2022 Ukraine conflict mobilization, many are now returning, drawn by emerging opportunities. “It is vital to continue fostering experimentation in AI,” he said.

Russia, currently ranked 31st in the Global AI Index by Tortoise Media, lags behind AI leaders like the United States and China. However, Vedyakhin argued that the six-to-nine-month gap could close quickly through supportive regulation and domestic innovation. “Sanctions were designed to limit our computing power, but we are compensating with the brilliance of our scientists and engineers,” he added.

At Sberbank’s annual AI Journey conference, President Vladimir Putin reiterated Russia’s intent to collaborate with BRICS nations and other partners to challenge U.S. dominance in AI technology. While Vedyakhin acknowledged that Russia would not rival the U.S. and China in building massive data centers, he outlined a strategy focused on developing smart, localized AI models akin to Meta’s Llama.

Generative AI models, like large language models (LLMs), analyze extensive datasets to produce human-like responses and content. Vedyakhin highlighted the importance of national AI models for maintaining technological sovereignty. He noted that foreign-trained models often misunderstand local cultural contexts, citing the example of a Western AI misinterpreting the Russian dish “herring under a fur coat” as a literal fish wearing a fur coat.

Vedyakhin also criticized overregulation in Europe and parts of China, which he said hampers innovation. He stressed the need for Russia to maintain an AI-friendly regulatory environment. “If we stifle experimentation with excessive restrictions, we risk falling behind in the global AI race,” he said.

Despite a broader decline in venture capital investment in Russia, funding for AI startups continues to grow. Vedyakhin predicted the rise of decentralized autonomous organizations (DAOs) powered by blockchain and AI agents, which could help address Russia’s labor shortages. He envisioned DAOs where AI handles most operations, with a single human at the helm, projecting widespread adoption within 3-5 years.

Russia’s focus on developing generative AI models tailored to its language and culture could help it carve out a niche in the global AI landscape, even as geopolitical and economic challenges persist.