Russia’s largest bank, Sberbank, has announced plans to collaborate with Chinese researchers on AI projects, as China’s DeepSeek gains momentum with its low-cost AI models, challenging U.S. dominance in the field.
Sberbank’s First Deputy CEO, Alexander Vedyakhin, revealed the bank’s intentions in an interview with Reuters, emphasizing Russia’s commitment to strengthening scientific cooperation with China. However, he did not disclose which Chinese institutions would be involved in the partnership.
This collaboration aligns with the long-standing AI partnership between Russia and China, two nations that have declared a “no limits” strategic alliance. Despite the secrecy surrounding their AI initiatives, their growing cooperation has raised concerns in the West, especially as AI plays a crucial role in defense and strategic industries.
DeepSeek’s Rise and Sberbank’s AI Strategy
DeepSeek, a Hangzhou-based startup, recently shook the global AI industry by demonstrating that high-performance AI models can be developed at a fraction of the cost incurred by U.S. tech giants. The company’s breakthrough has intensified the race between China and the United States for AI supremacy.
Vedyakhin acknowledged DeepSeek’s technological achievements, noting that Sberbank has compared its own GigaChat MAX model with DeepSeek’s AI. While DeepSeek excelled in scientific applications, GigaChat proved competitive in banking-related tasks.
The rapid success of DeepSeek reinforces Sberbank’s strategy of developing cost-effective AI solutions instead of pouring billions into infrastructure megaprojects like the U.S.-led Stargate initiative.
“DeepSeek has proven that even with limited resources, it is possible to achieve results comparable to American AI models,” Vedyakhin said. “This challenges the idea that extreme investments are necessary for innovation.”
Russia’s AI Challenges and Global Position
Russia, like China, faces difficulties in acquiring cutting-edge Western technology due to sanctions. These restrictions have slowed down domestic AI development, forcing Russian researchers to seek alternative pathways.
According to the Global AI Index by Tortoise Media, Russia ranks 31st out of 83 countries in AI development, falling behind not only the U.S. and China but also BRICS nations like India and Brazil.
Despite these setbacks, Sberbank remains a key player in Russia’s AI sector. Under CEO German Gref, the bank has transitioned from a bureaucratic Soviet-era institution into a leader in AI innovation. It launched the GigaChat model in 2023 and has since made several of its AI platforms publicly available, including the text-to-image model Kandinsky, inspired by the famous Russian artist Vassily Kandinsky.
A Strategic AI Alliance?
President Vladimir Putin has directed Sberbank to expand its AI collaboration with China and other BRICS nations to counterbalance U.S. dominance in the sector. The strengthening Russia-China AI partnership aligns with their broader geopolitical goals, as both nations challenge Western technological supremacy.
“The level of scientific cooperation between our countries can be significantly enhanced through collaboration between our researchers,” Vedyakhin stated, reinforcing the bank’s commitment to deepening ties with China.
With the AI race intensifying, the global tech landscape is witnessing major shifts. If Sberbank and China succeed in developing advanced AI systems together, they could disrupt the balance of power in the industry, raising new concerns for the West.
