Putin Directs Russia to Strengthen AI Corporation With China

President Vladimir Putin has directed Russia’s government and its largest bank, Sberbank, to deepen AI cooperation with China. This order was published on the Kremlin’s website on January 1st, signaling a significant strategic move.

The directive comes three weeks after Putin announced Russia’s intent to collaborate with BRICS partners on AI development. He instructed the government and Sberbank to “ensure further cooperation with the People’s Republic of China in technological research and development in the field of artificial intelligence.”

How Sanctions Impact Russia’s AI Ambitions and the Path to Overcome Them

Western sanctions have severely impacted Russia’s AI ambitions, particularly by limiting access to advanced microchips needed for AI development. Major producers have ceased exporting to Russia, which has hampered its technological advancements.

By partnering with China, Russia aims to circumvent these restrictions, leveraging China’s advanced AI capabilities and hardware production. This alliance could challenge the U.S. dominance in AI, one of the most pivotal technologies of the 21st century.

Geopolitical Implications: Strengthening Russia-China Ties Through AI Development

In December 2024, Putin announced the creation of an AI Alliance Network, aiming to unite specialists from BRICS nations and other interested countries. Russia currently ranks 31st out of 83 countries in the Global AI Index for AI implementation, innovation, and investment.

This is well behind not only the U.S. and China but also other BRICS members like India and Brazil. The cooperation with China is seen as a way to boost Russia’s standing in the global AI race.

Sberbank, under CEO German Gref, has been at the forefront of Russia’s AI efforts. Gref has acknowledged the challenge of replacing graphics processing units (GPUs), crucial for AI, due to sanctions.

China’s technological prowess in AI could provide Russia with the necessary tools to overcome these limitations. This partnership could lead to shared research, development of AI applications, and potentially, joint ventures in tech industries.

The move also reflects Russia’s broader geopolitical strategy to strengthen ties with non-Western nations, particularly China, in the face of Western isolation. Since the onset of Russia’s military operation in Ukraine, China has been a key ally, providing both economic support and a diplomatic shield against Western criticism. The deepening of AI cooperation is part of this strategic alignment.

Moreover, this partnership could lead to an exchange of AI talent, with Russian and Chinese scientists working together on projects that might otherwise be restricted by sanctions. The joint effort could accelerate the development of AI solutions tailored to the needs of both countries, potentially influencing global AI standards and applications.

As these nations seek to challenge the technological dominance of the West, their cooperation in AI is likely to have far-reaching implications. It could alter the balance of power in tech innovation, affect global economic dynamics, and reshape international relations in the digital age.