Belarus IT Sector Hit by Exodus

Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
TT

Belarus IT Sector Hit by Exodus

Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP
Belarus' booming IT industry is facing deep uncertainty after thousands of its workers decide to leave the country. AFP

Like thousands of others in Belarus, IT specialist Aliaksandr Charnavoki took to the streets of Minsk last year for unprecedented protests against strongman Alexander Lukashenko's 26-year rule.

Arrested, struck by police and held in detention for four days, Charnavoki eventually fled to neighboring Ukraine -- joining an exodus of fellow tech workers that has left the future of a booming IT sector in doubt.

It was not the "violence and lawlessness" that made him leave, Charnavoki, 39, told AFP in an interview on messenger Telegram.

It was the sense that nothing would ever change.

"The fight against the regime has become meaningless," he said.

If ex-Soviet Belarus is known for producing anything, it is more likely to be tractors, fertilizer and oil products than software and tech services.

But in recent years its capital Minsk has become a regional high-tech hub, especially after 2017 when Lukashenko signed a decree allowing tech companies not to pay most taxes, including income tax.
The country's Hi-Tech Park (HTP) scheme has seen more than 1,000 tech companies register to operate in Belarus, with over 70,000 workers.

Gaming giant Wargaming -- maker of "World of Tanks" and its multiple spin-offs -- was founded in Minsk and maintains its central development studio in the city.

Calling app Viber was another success story from the HTP, with its early development done in offices in Belarus, until the company was bought by Japanese tech giant Rakuten in 2014 for $900 million.
Much of the work is less glamourous -- like outsourced custom software design for corporate clients -- but very profitable.

The HTP says the Belarusian tech sector's exports of products and services hit a record $2.7 billion in 2020, up 25 percent from the year before, and accounting for four percent of the country's gross domestic product.

But now the industry is facing deep uncertainty after thousands of its workers -- many of them liberal-minded opposition supporters like Charnavoki -- decided to leave.

Last year's wave of demonstrations over a disputed August 9 election was met with an intense crackdown. Thousands were jailed as reports of torture and ill-treatment at the hands of police circulated widely.

Backed by ally Moscow, Lukashenko has weathered the protest storm despite fierce Western condemnation and several rounds of new sanctions.

The sanctions have not targeted the IT sector, but Sergei Lavrinenko, a Minsk-based IT expert, said he expected its growth to stall because of the exodus.

He estimated that up to 15,000 IT workers have already fled Belarus because of the crackdown.

Some companies have shuttered their operations entirely.



OpenAI to Open First Permanent London Office in 2027

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI to Open First Permanent London Office in 2027

FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI said on Monday it has secured its first permanent office in London, expanding capacity to meet growing demand in the UK and building on the ChatGPT maker's plans to make the city its largest research hub outside the United States.

Here are some details ⁠on the new ⁠London office:

The office is expected to open in 2027, with capacity for 544 team members, Microsoft-backed OpenAI said.

The ⁠space is located at Regent Quarter, spanning Jahn Court and the Brassworks Building in the King's Cross area.

OpenAI currently employs around 200 people in London across research, engineering, customer support, policy, and sales.

Last week, OpenAI said it was ⁠pausing ⁠its main data center project in Britain due to an unfavorable regulatory environment and high energy costs, a move that dealt a blow to the UK government's push to position the country as a global AI hub.


Canada's Cohere, Germany's Aleph Alpha Reportedly in Merger Talks

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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Canada's Cohere, Germany's Aleph Alpha Reportedly in Merger Talks

FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Artificial intelligence companies Cohere of Canada and Aleph Alpha of Germany are in talks to merge and have Berlin's support for a potential deal, newspaper Handelsblatt reported late on Thursday.

Citing government and industry sources, the paper said the German government would be willing to become a key customer of a combined company, part of a push to provide digital public services.

"If leading AI companies from Canada and Germany were to join forces that would send a very strong signal," German Digital Minister Karsten Wildberger told the ⁠paper.

Germany and Canada ⁠were already collaborating closely in the field, he was also quoted as saying.

Aleph Alpha told Reuters that regular discussions over strategic partnerships were standard practice in the AI industry and that Aleph Alpha had its own independent strategy, declining to comment further.

Cohere said it meets "with companies and institutions ⁠across Germany and Europe and continually evaluates strategic opportunities that support our global growth."

It also pointed Reuters to its international expansion efforts as well as to the Canadian-German Sovereign Technology Alliance agreed this year, but would not comment further.

Germany's research and digital ministries did not immediately respond to requests for comment.

Handelsblatt said merger talks started early this year and had reached an advanced stage, with plans for the new entity to be headquartered in both countries.

Germany has been eager to catch ⁠up with ⁠dominant AI players the US and China in a global race to master a transformational technology and attract high-income jobs. India has also emerged as a contender.

Last month, Berlin unveiled plans to encourage investments to boost AI data processing capacity at least fourfold by 2030.

Microsoft, which is collaborating with Cohere, unveiled $23 billion in AI investments in December, with the bulk earmarked for India and parts for Canada.

That was after Alphabet's Google said it would spend $15 billion over five years on an AI data center in India.


Apple Reportedly Leads Global Smartphone Shipments in 1st Quarter

FILE PHOTO: The Apple logo is seen during the preview of the redesigned and reimagined Apple Fifth Avenue store in New York, US, September 19, 2019. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: The Apple logo is seen during the preview of the redesigned and reimagined Apple Fifth Avenue store in New York, US, September 19, 2019. REUTERS/Brendan McDermid/File Photo
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Apple Reportedly Leads Global Smartphone Shipments in 1st Quarter

FILE PHOTO: The Apple logo is seen during the preview of the redesigned and reimagined Apple Fifth Avenue store in New York, US, September 19, 2019. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: The Apple logo is seen during the preview of the redesigned and reimagined Apple Fifth Avenue store in New York, US, September 19, 2019. REUTERS/Brendan McDermid/File Photo

iPhone-maker Apple led smartphone shipments in the first quarter, growing 5% year-on-year, ⁠even as overall ⁠global shipments remained ⁠under pressure due to a shortage of memory components and weak consumer sentiment, Counterpoint Research ⁠said ⁠on Friday.

Apple said on Thursday that it will shut down its retail store in Towson, Maryland, the first of its US locations where retail employees successfully unionized in 2022.

It described the decision as "difficult", citing the departure of several retailers and worsening conditions at the Towson Town Center mall as key reasons for the closure.

Apple said Towson employees will ⁠be eligible to ⁠apply for open roles at the company.

In 2022, more than 100 Apple workers in Towson voted to join the International Association of Machinists & Aerospace Workers (IAM) union, marking a milestone ⁠for unionization at major US corporations such as Amazon.com and Starbucks.

Around the same time, a similar union drive in Atlanta was withdrawn, with Apple workers alleging intimidation.