January 23, 2023

No Money, No AI


No Money, No AI
An inspection of the Skolkovo Foundation building under construction  Skolkovo Foundation

According to Kommersant, Russian authorities have significantly reduced funding for development of AI technologies.

In a 2019 roadmap spanning the forthcoming five years, the Ministry of Digital Development, Communications, and Mass Media of Russia planned to spend R56.8 billion ($830 million) on the development of artificial intelligence technologies.

According to a new roadmap, however, the state will only spend R24.6 billion ($359 million) from now through 2030. Expected extra-budgetary financing for the sector decreased even more significantly: from R334 billion ($4.8 billion) through 2024 to R111 billion ($1.6 billion) through 2030. 

Expectations of the return on investment have also decreased. In 2019, it was assumed that, by 2024, the domestic AI technology market would total R160 billion ($2.3 billion). The new document assumes a market less than one-tenth that size.

Thirty foundations, universities, and government entities will be engaged in the development of AI technologies in Russia. Among them are the Skolkovo Foundation, the Russian Direct Investment Fund, and Sberbank, all of which are under EU and US sanctions, complicating their access to technological products.

As an example of the effects that western sanctions are having on Russia's IT sector, after the Russian invasion of Ukraine, Taiwan's TSMC company suspended deliveries to Russia and refused to produce new chips for Russian developers. This forced Baikal Electronics (a domestic semiconductor company) to suspend production of server CPUs.

Russian technology companies also are short on personnel. An estimated 500,000 citizens have left Russia. According to Forbes, about 30 percent of Russia's IT specialists have left the country or are planning to do so soon.

You Might Also Like

A Year of Decline
  • December 31, 2022

A Year of Decline

Russia’s War on Ukraine is exacting deep and enduring economic and social costs on the country.
Russia in 2022
  • December 23, 2022

Russia in 2022

In which we look back at Russia's performance in 2022.
While Supplies Last
  • December 20, 2022

While Supplies Last

Prices for Moscow real estate, usually a hot market, are down a record 35 percent.
Russians Getting a Raise?
  • December 08, 2022

Russians Getting a Raise?

In a November 30 speech, President Vladimir Putin said the next big challenge for his government will be raising the economic well-being of Russians.
Like this post? Get a weekly email digest + member-only deals

Some of our Books

Stargorod: A Novel in Many Voices
May 01, 2013

Stargorod: A Novel in Many Voices

Stargorod is a mid-sized provincial city that exists only in Russian metaphorical space. It has its roots in Gogol, and Ilf and Petrov, and is a place far from Moscow, but close to Russian hearts. It is a place of mystery and normality, of provincial innocence and Black Earth wisdom. Strange, inexplicable things happen in Stargorod. So do good things. And bad things. A lot like life everywhere, one might say. Only with a heavy dose of vodka, longing and mystery.

White Magic
June 01, 2021

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.

A Taste of Russia
November 01, 2012

A Taste of Russia

The definitive modern cookbook on Russian cuisine has been totally updated and redesigned in a 30th Anniversary Edition. Layering superbly researched recipes with informative essays on the dishes' rich historical and cultural context, A Taste of Russia includes over 200 recipes on everything from borshch to blini, from Salmon Coulibiac to Beef Stew with Rum, from Marinated Mushrooms to Walnut-honey Filled Pies. A Taste of Russia shows off the best that Russian cooking has to offer. Full of great quotes from Russian literature about Russian food and designed in a convenient wide format that stays open during use.

The Little Humpbacked Horse
November 03, 2014

The Little Humpbacked Horse

A beloved Russian classic about a resourceful Russian peasant, Vanya, and his miracle-working horse, who together undergo various trials, exploits and adventures at the whim of a laughable tsar, told in rich, narrative poetry.

Murder at the Dacha
July 01, 2013

Murder at the Dacha

Senior Lieutenant Pavel Matyushkin has a problem. Several, actually. Not the least of them is the fact that a powerful Soviet boss has been murdered, and Matyushkin's surly commander has given him an unreasonably short time frame to close the case.

Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

About Us

Russian Life is the 31-year-old publication of an award-winning publishing house that also creates books, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955