Putin to Boost AI Work in Russia to Fight ‘Dangerous’ Western Monopoly

This pool photograph distributed by Russian state agency Sputnik shows Russia's President Vladimir Putin (C), accompanied by Russia's top lender Sberbank CEO German Gref (L), touring an exhibition on the sidelines of an AI (artificial intelligence) conference in Moscow on November 24, 2023. (AFP)
This pool photograph distributed by Russian state agency Sputnik shows Russia's President Vladimir Putin (C), accompanied by Russia's top lender Sberbank CEO German Gref (L), touring an exhibition on the sidelines of an AI (artificial intelligence) conference in Moscow on November 24, 2023. (AFP)
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Putin to Boost AI Work in Russia to Fight ‘Dangerous’ Western Monopoly

This pool photograph distributed by Russian state agency Sputnik shows Russia's President Vladimir Putin (C), accompanied by Russia's top lender Sberbank CEO German Gref (L), touring an exhibition on the sidelines of an AI (artificial intelligence) conference in Moscow on November 24, 2023. (AFP)
This pool photograph distributed by Russian state agency Sputnik shows Russia's President Vladimir Putin (C), accompanied by Russia's top lender Sberbank CEO German Gref (L), touring an exhibition on the sidelines of an AI (artificial intelligence) conference in Moscow on November 24, 2023. (AFP)

Russian President Vladimir Putin on Friday announced a plan to endorse a national strategy for the development of artificial intelligence, emphasizing that it's essential to prevent a Western monopoly.

Speaking at an AI conference in Moscow, Putin noted that “it’s imperative to use Russian solutions in the field of creating reliable and transparent artificial intelligence systems that are also safe for humans.”

“Monopolistic dominance of such foreign technology in Russia is unacceptable, dangerous and inadmissible,” Putin said.

He noted that “many modern systems, trained on Western data are intended for the Western market” and “reflect that part of Western ethics, norms of behavior, public policy to which we object.”

During his more than two decades in power, Putin has overseen a multi-pronged crackdown on the opposition and civil society groups, and promoted “traditional values” to counter purported Western influence — policies that have become even more oppressive after he sent troops into Ukraine in February 2022.

Putin warned that algorithms developed by Western platforms could lead to a digital “cancellation” of Russia and its culture.

“An artificial intelligence created in line with Western standards and patterns could be xenophobic,” Putin said.

“Western search engines and generative models often work in a very selective, biased manner, do not take into account, and sometimes simply ignore and cancel Russian culture,” he said.

“Simply put, the machine is given some kind of creative task, and it solves it using only English-language data, which is convenient and beneficial to the system developers. And so an algorithm, for example, can indicate to a machine that Russia, our culture, science, music, literature simply do not exist.”

He pledged to pour additional resources into the development of supercomputers and other technologies to help intensify national AI research.

“We are talking about expanding fundamental and applied research in the field of generative artificial intelligence and large language models,” Putin said.

“In the era of technological revolution, it is the cultural and spiritual heritage that is the key factor in preserving national identity, and therefore the diversity of our world, and the stability of international relations,” Putin said. “Our traditional values, the richness and beauty of the Russian languages and languages of other peoples of Russia must form the basis of our developments,” helping create “reliable, transparent and secure AI systems.”

Putin emphasized that trying to ban AI development would be impossible, but noted the importance of ensuring necessary safeguards.

“I am convinced that the future does not lie in bans on the development of technology, it is simply impossible,” he said. “If we ban something, it will develop elsewhere, and we will only fall behind, that's all.”

Putin added that the global community will be able to work out the security guidelines for AI once it fully realizes the risks.

“When they feel the threat of its uncontrolled spread, uncontrolled activities in this sphere, a desire to reach agreement will come immediately,” he said.



OpenAI Abandons Plan to Become For-profit Company

'OpenAI is not a normal company and never will be,' OpenAI CEO Sam Altman wrote in an email to staff posted on the company's website. JOEL SAGET / AFP
'OpenAI is not a normal company and never will be,' OpenAI CEO Sam Altman wrote in an email to staff posted on the company's website. JOEL SAGET / AFP
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OpenAI Abandons Plan to Become For-profit Company

'OpenAI is not a normal company and never will be,' OpenAI CEO Sam Altman wrote in an email to staff posted on the company's website. JOEL SAGET / AFP
'OpenAI is not a normal company and never will be,' OpenAI CEO Sam Altman wrote in an email to staff posted on the company's website. JOEL SAGET / AFP

OpenAI CEO Sam Altman announced Monday that the company behind ChatGPT will continue to be run as a nonprofit, abandoning a contested plan to convert into a for-profit organization.

The structural issue had become a significant point of contention for the artificial intelligence (AI) pioneer, with major investors pushing for the change to better secure their returns, AFP said.

AI safety advocates had expressed concerns about pursuing substantial profits from such powerful technology without the oversight of a nonprofit board of directors acting in society's interest rather than for shareholder profits.

"OpenAI is not a normal company and never will be," Altman wrote in an email to staff posted on the company's website.

"We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware," he added.

OpenAI was founded as a nonprofit in 2015 and later created a "capped" for-profit entity allowing limited profit-making to attract investors, with cloud computing giant Microsoft becoming the largest early backer.

This arrangement nearly collapsed in 2023 when the board unexpectedly fired Altman. Staff revolted, leading to Altman's reinstatement while those responsible for his dismissal departed.

Alarmed by the instability, investors demanded OpenAI transition to a more traditional for-profit structure within two years.

Under its initial reform plan revealed last year, OpenAI would have become an outright for-profit public benefit corporation (PBC), reassuring investors considering the tens of billions of dollars necessary to fulfill the company's ambitions.

Any status change, however, requires approval from state governments in California and Delaware, where the company is headquartered and registered, respectively.

The plan faced strong criticism from AI safety activists and co-founder Elon Musk, who sued the company he left in 2018, claiming the proposal violated its founding philosophy.

In the revised plan, OpenAI's money-making arm will now be fully open to generate profits but, crucially, will remain under the nonprofit board's supervision.

"We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone," Altman said.

SoftBank sign-off

OpenAI's major investors will likely have a say in this proposal, with Japanese investment giant SoftBank having made the change to being a for-profit a condition for their massive $30 billion investment announced on March 31.

In an official document, SoftBank stated its total investment could be reduced to $20 billion if OpenAI does not restructure into a for-profit entity by year-end.

The substantial cash injections are needed to cover OpenAI's colossal computing requirements to build increasingly energy-intensive and complex AI models.

The company's original vision did not contemplate "the needs for hundreds of billions of dollars of compute to train models and serve users," Altman said.

SoftBank's contribution in March represented the majority of the $40 billion raised in a funding round that valued the ChatGPT maker at $300 billion, marking the largest capital-raising event ever for a startup.

The company, led by Altman, has become one of Silicon Valley's most successful startups, propelled to prominence in 2022 with the release of ChatGPT, its generative AI chatbot.