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DeepSeek's AI gains traction in developing nations, Microsoft report says

DeepSeek holds an 89% market share in China and significant shares in other developing countries, driven by free, open-source AI models and affordability, Microsoft researchers said.

  • On Thursday, Microsoft researchers reported global generative AI adoption reached 16.3% in the three months to December, and the report found DeepSeek gaining ground in developing nations.
  • Founded in 2023, DeepSeek offered free, open models and a free-to-use chatbot with developer access, which Microsoft said `lowered the barrier for millions of users` in price-sensitive regions.
  • Country-Level data show strong shares in Russia and parts of the Middle East, with DeepSeek holding 89% in China, around 43% in Russia, and 23%–25% in Syria and Iran.
  • Microsoft and other governments have moved to restrict DeepSeek, with Microsoft banning employee use last year and developed countries seeking limits over alleged security risks, while the report said open-source AI can extend Chinese influence.
  • The report warned the adoption gap is widening, with advanced economies growing nearly twice as fast as developing nations, while countries like the United Arab Emirates and Singapore lead in user shares.
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DeepSeek's AI gains traction in developing nations, Microsoft report says

DeepSeek, a Chinese tech startup, is gaining traction in developing nations, narrowing the AI adoption gap with advanced economies.

·United States
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One in six people worldwide uses generative AI tools every month, according to the latest Microsoft report. • Countries in the Global North have the highest levels of adoption and growth. • The technological gap between regions will widen by 2025. The report, Global AI Adoption in 2025 – A Widening Digital Divide, was produced by Microsoft's AI Economy Institute… Source

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Associated Press News broke the news in United States on Thursday, January 8, 2026.
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