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.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.