DeepSeek gains ground in developing nations as Chinese AI reshapes global adoption landscape

Reviewed byNidhi Govil

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Chinese AI startup DeepSeek is rapidly gaining traction in developing nations through its free and open-source models, potentially narrowing the AI adoption gap with advanced economies. A new Microsoft report reveals the platform has captured 89% market share in China and is expanding influence across regions where Western platforms face restrictions, raising questions about geopolitical implications and the future of global AI access.

DeepSeek Expands Footprint Across Developing Nations

DeepSeek, the Chinese AI startup founded in 2023, is gaining traction in developing nations and reshaping the global artificial intelligence landscape, according to a Thursday Microsoft report

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. The platform's free and open-source models are driving adoption in price-sensitive regions, potentially narrowing the AI adoption gap between advanced and developing economies. Researchers from Microsoft's AI for Good Lab found that global adoption of generative AI tools reached 16.3% of the world's population in the three months to December, up from 15.1% in the previous quarter

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Source: AP

Source: AP

Yet the widening divide in AI adoption remains a concern. Juan Lavista Ferres, chief data scientist for Microsoft's AI for Good Lab, noted that AI adoption across advanced economies is growing nearly twice as fast as in developing nations

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. "We are seeing a divide and we are concerned that that divide will continue to widen," Ferres said. Countries like the United Arab Emirates, Singapore, France and Spain lead in user shares due to early and consistent investment in digital infrastructure.

Chinese AI Startup Captures Dominant Market Share

DeepSeek's market share reveals striking regional patterns. In China, the platform commands an 89% market share, followed by Belarus at 56% and Cuba at 49%

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. In Russia, market share reached approximately 43%, while in Syria and Iran, DeepSeek captured around 23% and 25% respectively. The platform also shows notable presence across African countries including Ethiopia, Zimbabwe, Uganda and Niger, where market share ranges between 11% to 14%

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The Chinese AI startup's prevalence correlates with its status as a default chatbot on widely available phones made by Chinese tech companies like Huawei

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. Adoption surged particularly in regions where U.S. services face restrictions or where foreign tech access is limited, including China, Russia, Iran, Cuba and Belarus. Meanwhile, adoption remained low in North America and Europe.

Open-Source AI Functions as Geopolitical Instrument

The Microsoft report highlights how open-source AI can function as a geopolitical instrument, extending Chinese influence in areas where Western platforms cannot easily operate

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. DeepSeek released its advanced reasoning AI model called R1 in January 2025, claiming it was more cost-effective than OpenAI's similar model. This release raised eyebrows in the global technology industry as observers noted how China is catching up with the U.S. in technological advancements. Leading science journal Nature published peer-reviewed research co-authored by DeepSeek founder Liang Wenfeng in September, describing it as a "landmark paper" from the Chinese AI startup

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"This combination of openness and affordability allowed DeepSeek to gain traction in markets underserved by Western platforms," the Microsoft report stated

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. The platform offers a free-to-use chatbot on web and mobile, and has given developers global access to modify and build on its core engine. Its lack of subscription fees has "lowered the barrier for millions of users, especially in price-sensitive regions."

Security Risks and Content Filtering Concerns

Developed countries including Australia, Germany and the U.S. have sought to limit the use of DeepSeek over alleged security risks

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. Microsoft last year banned its own employees from using DeepSeek. Ferres acknowledged that while DeepSeek is a "good model" for tasks like math or coding, it operates differently from U.S.-based models on topics like politics. "We have observed that for certain type of questions, of course, they follow the same type of access to the internet that China has," he said. "Which means that there will be questions that will be answered very differently, particularly political questions. In many ways that can have an influence on the world"

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The report suggests that "DeepSeek's rise shows that global AI adoption is shaped as much by access and availability as by model quality"

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. This development signals a shift in how AI tools reach global users, particularly in underserved markets where cost barriers have historically limited access to advanced technology. The platform's expansion raises questions about content filtering, data privacy, and the long-term implications of Chinese influence in shaping AI experiences across developing regions.

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