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

The Pet Hawk of the House of Abbas
October 01, 2013

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.

 
Steppe
July 15, 2022

Steppe

This is the work that made Chekhov, launching his career as a writer and playwright of national and international renown. Retranslated and updated, this new bilingual edition is a super way to improve your Russian.

Russian Rules
November 16, 2011

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.

Fearful Majesty
July 01, 2014

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.

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.

At the Circus
January 01, 2013

At the Circus

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.

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.

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.

How Russia Got That Way
September 20, 2025

How Russia Got That Way

A fast-paced crash course in Russian history, from Norsemen to Navalny, that explores the ways the Kremlin uses history to achieve its ends.

93 Untranslatable Russian Words
December 01, 2008

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.

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