Russia's Yandex to invest in Indonesia's AI ecosystem


Russia's Yandex to invest in Indonesia's AI ecosystem

Russia's internet giant Yandex is planning to invest in Indonesia's artificial intelligence (AI) ecosystem, Reuters reports.

The deal is said to focus on expanding the search engine platform in Indonesia.

The announcement was made by Indonesia's communications and digital minister Meutya Hafid.

Hafid, who met with Yandex's international search division head Alexander Popovskiy, noted that the internet giant expressed plans to "widen the search engine platform in Indonesia," as per a statement from the ministry.

However, details on the investment's specifics or size have not been disclosed.

The Indonesian ministry has not provided immediate responses regarding the investment's size or timeline.

Yandex, often referred to as "Russia's Google," also did not respond to requests for comment on the development.

The company is recognised for developing its own large language models and is a leader in AI in Russia.

Yandex recently reported a 36% year-on-year increase in revenue for the third quarter of 2024, reaching Rbs276.8bn ($2.76bn).

Adjusted EBITDA for Q3 2024 stood at Rbs54.7bn, or 19.8% of revenue, reflecting a 3.7 percentage point improvement compared to the same period in 2023.

The company also maintained its 2024 forecast, projecting total group revenues to grow by 38%-40% year-on-year, with adjusted EBITDA expected to range between Rbs170bn and Rbs175bn.

Indonesia has been attracting interest in recent months from global tech companies with AI chip maker Nvidia and Indonesia's telco company PT Indosat Ooredoo Hutchison announcing plans to build an AI centre in Central Java, valued at $200m.

Additionally, Microsoft announced earlier in 2024, that it will invest $1.7bn over the next four years to expand cloud services and AI in Indonesia, including the construction of data centres.

"Russia's Yandex to invest in Indonesia's AI ecosystem" was originally created and published by Verdict, a GlobalData owned brand.

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