China’s AI Dominance Spreads Through Africa and Sanctioned Markets, Outpacing U.S. Efforts

Microsoft has raised alarms over China's accelerating influence in the global AI race, particularly across Africa, Russia, and Belarus. While American tech giants remain focused on paid subscriptions and closed ecosystems, Chinese models like DeepSeek's R1 are gaining rapid adoption through open-source frameworks and government-subsidized pricing.

Brad Smith, Microsoft's president, highlighted the strategic shift: "China now fields competitive open-source AI models—something unimaginable a year ago." State-backed subsidies allow Chinese firms to undercut U.S. competitors on price, fueling adoption in markets where American presence is limited.

DeepSeek's R1 model commands 56% of Belarus' AI market, 49% in Cuba, and 43% in Russia. African nations like Ethiopia (18%) and Zimbabwe (17%) show similar penetration patterns. The affordability and accessibility of these tools are reshaping technology adoption across the Global South.