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

Bears in the Caviar

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.
Woe From Wit (bilingual)

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.
Marooned in Moscow

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.
The Pet Hawk of the House of Abbas

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.  
At the Circus (bilingual)

At the Circus (bilingual)

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.
Stargorod: A Novel in Many Voices

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.
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

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.
Fearful Majesty

Fearful Majesty

This acclaimed biography of one of Russia’s most important and tyrannical rulers is not only a rich, readable biography, it is also surprisingly timely, revealing how many of the issues Russia faces today have their roots in Ivan’s reign.
Russian Rules

Russian Rules

From the shores of the White Sea to Moscow and the Northern Caucasus, Russian Rules is a high-speed thriller based on actual events, terrifying possibilities, and some really stupid decisions.
The Little Humpbacked Horse (bilingual)

The Little Humpbacked Horse (bilingual)

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.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, 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