Russian President Vladimir Putin has instructed the government and the country’s largest bank, Sberbank, to collaborate with China on artificial intelligence (AI), according to a Reuters report.

Putin's directive, published on the Kremlin's website, aims to enhance cooperation with China in technological research and development within the AI industry. This announcement comes three weeks after Putin revealed plans for Russia to team up with BRICS partners and other countries to advance AI.

Due to economic sanctions, Russia's access to essential technologies has been restricted, with many microchip producers halting exports to the country. This has severely limited Russia's AI ambitions.

Sberbank’s chief executive, German Gref, highlighted in 2023 that graphics processing units (GPUs)—the microchips crucial for AI development—were the most challenging hardware for Russia to replace.

During a speech at an AI conference in Russia last month, Putin acknowledged Sberbank's significant role in advancing AI technology.

“I would like to note that in just a year, artificial intelligence technologies have transformed entire industries beyond recognition, even the so-called creative industries, where the human sense of harmony and beauty had seemed absolutely irreplaceable,” he said. “To be honest, I thought this was impossible, but these boundaries are being erased now.”

By partnering with non-Western countries, Russia aims to challenge the dominance of the United States in one of the most promising and crucial technologies of the 21st century. Putin announced on December 11 that a new AI Alliance Network would bring together specialists from BRICS countries and other interested states.

Russia currently ranks 31st out of 83 countries in AI implementation, innovation, and investment, according to the UK-based Tortoise Media's Global AI Index. This places Russia behind the US, China, India, and Brazil.

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