The European Business Council for Africa

30 October 2025

When Chinese artificial intelligence startup DeepSeek announced plans to expand across Africa, few expected it would stir such a buzz in the tech world. Yet within months, its low-cost AI models have captured the attention of developers, startups, and policymakers from Nairobi to Lagos, Johannesburg to Cairo, sparking new discussions about the future of Africa’s digital independence and its place in the global AI race.

Founded in 2023 and based in Hangzhou, DeepSeek quickly emerged as one of China’s most ambitious AI firms. Its breakthrough model, known as DeepSeek R1, gained global attention for delivering high-level reasoning capabilities at a fraction of the cost required to train similar systems from Western companies like OpenAI and Google DeepMind.

While most leading AI models rely on expensive supercomputers and consume massive amounts of energy, DeepSeek’s engineers took a different approach by optimising for efficiency. The company claims its model was trained for around six million US dollars, a fraction of what OpenAI reportedly spends on its GPT series. This affordability is exactly what is making DeepSeek attractive across Africa, where access to computing infrastructure and cloud power remains limited.

Africa’s AI market is expanding fast, with governments and private firms embracing automation, predictive analytics, and digital learning tools. Yet the high cost of Western AI models has long restricted access, especially for startups and small businesses.

OpenAI was started in 2015 by a group of tech gurus, including Elon Musk and Sam Altman. Photo courtesy.

DeepSeek has spotted this gap and is moving quickly to fill it. Through partnerships with Huawei Cloud and regional tech incubators, the company is bundling its models with affordable computing services in countries such as Kenya, Nigeria, Ghana, and South Africa. According to reliable reports, DeepSeek’s localized pricing structure and low-energy requirements make it “a realistic alternative for Africa’s growing AI community.”

For many African innovators, DeepSeek’s arrival could be a turning point. Reports indicate that several tech startups around Africa have switched from a Western AI provider to DeepSeek’s platform after realizing it offered almost the same quality output at a fraction of the cost. In Nigeria, for example, data analytics startups are experimenting with DeepSeek’s language tools to process local dialects, while universities in Ghana and Ethiopia, on the other hand, are exploring collaborations on AI ethics and multilingual training data. “We are not just looking for cheap tools,” says a Lagos-based AI researcher. “We want models that can actually understand African languages, cultural context, and environmental challenges.”

DeepSeek’s rise in Africa is closely tied to China’s broader digital diplomacy strategy. Partnerships with Huawei, ZTE, and China Telecom are giving the company access to existing data centres and cloud infrastructure across the continent. These partnerships cut operational costs while deepening China’s technological footprint in Africa, already visible in telecommunications, e-commerce, and digital finance. Analysts say this could shift the balance of power in the global AI industry.

“China’s DeepSeek is positioning itself as the AI of the Global South,” says tech analyst Dr. Tunde Adebayo. “Its model focuses on accessibility and cost-efficiency, something that resonates with African markets more than Western AI ecosystems built for billion-dollar companies.”

DeepSeek’s model promises a new era of inclusivity in AI adoption. Lower compute requirements mean local data scientists can train and deploy models without relying on expensive offshore servers. Educational institutions can integrate AI into curricula, and startups can build locally relevant applications at minimal cost.

However, concerns remain. Experts warn that Africa’s increasing reliance on foreign-developed AI could create new forms of dependency. Issues around data sovereignty, privacy, and algorithmic transparency are yet to be fully addressed. “The question is not just who builds the AI,” notes Ethiopian digital policy scholar Dr. Melesse Bekele, “but who controls the data it learns from and how that knowledge is used.”

As global competition for AI dominance intensifies, Africa is becoming an important testing ground for next-generation technologies. OpenAI and Google still hold a strong presence, particularly in research collaborations and developer communities.

American computer scientists Larry Page and Sergey Brin founded Google on September 4, 1998. Photo courtesy.

Yet DeepSeek’s rise highlights the continent’s growing influence in shaping the global tech narrative. Africa’s future in artificial intelligence may depend on how well it balances access and autonomy.

The rapid expansion of DeepSeek has once again proven that innovation does not always come from the biggest names but from those who understand local realities best.

Source: African Global News