Putin orders Russian government, Sberbank to develop AI cooperation with China

Russian President Vladimir Putin has instructed the government and Sberbank, the country's largest bank, to enhance collaboration with China in the field of artificial intelligence (AI).

The directive was first published on the Kremlin's website on Wednesday, three weeks after Putin's declaration of a new AI Alliance Network involving BRICS nations and other interested countries, according to TASS news agency.

He told the government and Sberbank to "ensure further co-operation with the People's Republic of China in technological research and development in the field of artificial intelligence,” aimed at fostering cooperation in AI research and development

Sberbank, which is at the forefront of Russia's AI initiatives, has already engaged with AI associations from BRICS countries, including Brazil, India, and South Africa.

On December 11 after the AI Journey tech conference was held in Moscow, Putin expressed his desire to establish a new AI Alliance Network that would include members from BRICS and other interested nations. The BRICS bloc, composed of emerging economies, is often viewed as a counterbalance to Western influence.

"Russia must participate on equal terms in the global race to create strong artificial intelligence. It is precisely the advanced solutions that Russian scientists are currently working on," Putin said at the conference, adding that Russia invites scientists from all over the world to join in the collaboration.

Due to Western sanctions aimed at limiting Moscow's access to essential technologies for sustaining its military operations in Ukraine, major microchip manufacturers have ceased exports to Russia, significantly hindering its AI initiatives.

Sberbank's CEO, German Gref, acknowledged in 2023 that replacing graphics processing units (GPUs)—the critical hardware for AI development—has proven to be particularly challenging for Russia.

By forging partnerships with non-Western nations, Russia aims to contest the United States' dominance in one of the most promising and vital technologies of the 21st century.

The formation of the AI Alliance Network is seen as an effort to counterbalance the technological dominance of the United States, with Russia currently ranking 31st among the 83 countries in terms of AI implementation, innovation, and investment, according to the Global AI Index by Tortoise Media.

The initiative aims to keep pace not only with the United States and China but also with fellow BRICS nations India and Brazil.

Russia sees the use of AI technologies across all sectors adding 11.2 trillion roubles ($109 billion) to gross domestic product in 2030, compared to 0.2 trillion roubles ($1.9 billion) in 2023.

Its AI strategy also says that 80% of all Russian workers should have AI skills by 2030, compared with 5% in 2023, while AI investment should grow seven-fold to 850 billion roubles.

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