Putin orders Sberbank to collaborate with China on AI development, challenging Western tech dominance amid ongoing sanctions and restrictions.
Putin directs Russia's largest financial institution to collaborate with China on AI development to rival Western technological supremacy
Russian President Vladimir Putin is advancing his confrontation with Western dominance — this time in technology.
The Russian head of state has directed his administration and Russian banking powerhouse Sberbank to collaborate with China on artificial intelligence initiatives, according to a December 30 announcement on the Kremlin's official website.
Putin commanded his administration and Sberbank to "secure ongoing collaboration with the People's Republic of China in conducting technological research and development in the artificial intelligence sector," as stated in the Kremlin's announcement. The directive came three weeks following Putin's revelation of a BRICS AI Alliance Network.
Putin assigned Prime Minister Mikhail Mishustin and Sberbank Chief Executive German Gref to spearhead the AI initiative. A status update is anticipated by April.
Russia's establishing alternative frameworks to Western systems
Putin's directive came 34 months after Russia's comprehensive invasion of Ukraine, which resulted in extensive Western sanctions against his government.
The economic restrictions have impacted Russia's ability to access financial technology systems, compelling the nation to pursue alternatives through parallel imports and domestic replacements.
Russia has additionally been constructing alternative mechanisms to handle payment processing and transport sanctioned oil globally.
Nevertheless, discovering technological alternatives to Western solutions has proven challenging.
A previous senior Russian financial official informed Reuters in September 2022 that Russia would be utilizing inferior technology for years and investing "substantial resources" to duplicate existing systems. Products severely affected by Western sanctions include semiconductor chips, aviation components, and medical equipment.
Sberbank Chief Executive Gref stated in April 2023 that graphics processors for AI and supercomputers were the most difficult to replace.
The US has limited sales of sophisticated computer chips to Russia since 2022 and further strengthened restrictions on third-party chip exports to Russia in the previous year.
Alexander Vedyakhin, Sberbank's first deputy chief executive, disclosed to Reuters last month that Russia lagged six to nine months behind the US and China in AI across various metrics.
Vedyakhin informed the news agency that Russia would concentrate on developing large language models rather than constructing extensive data centers.
A potential Russia-China collaboration in AI could raise concerns beyond sanctions evasion.
China's advancement in AI is generating worries about censorship in the nation, where expression is strictly regulated.
Chinese authorities have evaluated Chinese large language models to ensure they reflect "core socialist values," according to a Financial Times report in July.