DeepSeek AI Surges in Developing Nations, Microsoft Report Reveals Widening AI Gap

• Chinese startup DeepSeek AI is gaining significant traction in developing nations, potentially narrowing the AI adoption gap with advanced economies.
• Global generative AI adoption reached 16.3% by December, but the divide between developed and developing economies is widening, with advanced economies growing twice as fast.
• DeepSeek's free and open-source models, including its advanced R1 reasoning model, have driven its popularity, especially in price-sensitive regions.
• DeepSeek's responses to political topics differ from US-based models, adhering to China's internet access framework, which could impact global information flows.
• While popular in China, Russia, Iran, Cuba, and Belarus, DeepSeek faces usage limitations in countries like Australia, Germany, and the US due to security concerns.

Why It Matters: DeepSeek AI's rise in developing nations highlights China's tech influence and the growing global AI adoption divide.