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Microsoft Warns U.S. Risks Ceding AI Influence as Chinese Open Models Gain Ground Overseas

Brad Smith urges faster infrastructure build‑out with flexible policy to counter subsidized, low‑cost rivals.

Overview

  • Microsoft’s usage data shows Chinese open‑source models led by DeepSeek’s R1 hold 56% share in Belarus, 49% in Cuba, and 43% in Russia.
  • The research estimates notable footholds in Africa, including 18% in Ethiopia and 17% in Zimbabwe.
  • Smith says Chinese government subsidies enable providers to undercut U.S. companies on price, accelerating uptake outside traditional Western markets.
  • U.S. tech firms are pushing for quicker data‑center approvals, citing reports that more than $64.4 billion in projects were blocked or delayed over the past two years.
  • Smith calls for support from development banks to build AI capacity in emerging markets, even as Chinese developers rely on U.S. hardware such as Nvidia chips for advanced training.