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

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.
The Little Golden Calf

The Little Golden Calf

Our edition of The Little Golden Calf, one of the greatest Russian satires ever, is the first new translation of this classic novel in nearly fifty years. It is also the first unabridged, uncensored English translation ever, and is 100% true to the original 1931 serial publication in the Russian journal 30 Dnei. Anne O. Fisher’s translation is copiously annotated, and includes an introduction by Alexandra Ilf, the daughter of one of the book’s two co-authors.
Okudzhava Bilingual

Okudzhava Bilingual

Poems, songs and autobiographical sketches by Bulat Okudzhava, the king of the Russian bards. 
Dostoyevsky Bilingual

Dostoyevsky Bilingual

Bilingual series of short, lesser known, but highly significant works that show the traditional view of Dostoyevsky as a dour, intense, philosophical writer to be unnecessarily one-sided. 
Maria's War: A Soldier's Autobiography

Maria's War: A Soldier's Autobiography

This astonishingly gripping autobiography by the founder of the Russian Women’s Death Battallion in World War I is an eye-opening documentary of life before, during and after the Bolshevik Revolution.
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.
A Taste of Chekhov

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.
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.
Jews in Service to the Tsar

Jews in Service to the Tsar

Benjamin Disraeli advised, “Read no history: nothing but biography, for that is life without theory.” With Jews in Service to the Tsar, Lev Berdnikov offers us 28 biographies spanning five centuries of Russian Jewish history, and each portrait opens a new window onto the history of Eastern Europe’s Jews, illuminating dark corners and challenging widely-held conceptions about the role of Jews in Russian history.
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.

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