A recent report released by Microsoft shows that the domestic AI startup DeepSeek is demonstrating strong dominance in developing countries (i.e., the "Global South") due to its high cost-effectiveness. This trend not only marks the global export of Chinese AI technology but also has the potential to narrow the "digital divide" between developing and developed countries.

The report indicates that the user penetration rate of generative AI worldwide reached 16.3% in the three months ending last December. However, due to differences in infrastructure and investment, the gap between developed and developing countries continues to widen. In this context, DeepSeek quickly opened up markets with its two key advantages: "open source" and "free."

The research found that DeepSeek holds an 89% market share in China, and in countries such as Belarus, Cuba, and Russia, it reaches 56%, 49%, and 43% respectively. Moreover, the model's adoption rate is also impressive in countries like Syria, Iran, and Ethiopia. Notably, DeepSeek often comes pre-installed on smartphones from Chinese brands such as Huawei, directly reaching tens of millions of overseas users.

Microsoft researchers admitted that DeepSeek performs well in tasks such as mathematical calculations and code writing, making it a "high-quality model." Although its penetration rate is relatively low in North America and Europe due to policy and security reviews, the rise of DeepSeek has proven to the world that the popularity of AI depends not only on performance but also on the accessibility and availability of the technology.

Key points:

  • 🚀 Spreading to Emerging Markets: DeepSeek holds an 89% market share in China and has become a mainstream AI tool in developing countries such as Russia and Belarus.

  • 💰 High Cost-Effectiveness Breaking Barriers: With free usage and open-source features, DeepSeek significantly lowers the barriers, making it the preferred choice for price-sensitive regions.

  • 📱 Hardware Ecosystem Boosting: By being pre-installed on popular smartphones from Chinese brands such as Huawei, DeepSeek has achieved rapid expansion globally.