{"id":63461,"date":"2025-10-26T21:53:31","date_gmt":"2025-10-26T21:53:31","guid":{"rendered":"https:\/\/www.africa-press.net\/lesotho\/all-news\/chinas-deepseek-outpaces-openai-and-google-in-lesotho"},"modified":"2025-10-26T21:54:07","modified_gmt":"2025-10-26T21:54:07","slug":"chinas-deepseek-outpaces-openai-and-google-in-lesotho","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/lesotho\/all-news\/chinas-deepseek-outpaces-openai-and-google-in-lesotho","title":{"rendered":"China’s Deepseek Outpaces OpenAI and Google in lesotho"},"content":{"rendered":"

Africa-Press – Lesotho. <\/strong><\/span>Earlier this year, in a conference room at the Nairobi headquarters of a social impact startup named Qhala, a group of executives from tech firms across the continent gathered to hear a presentation about the promise of AI. The speaker was Harrison Li, chief solutions architect for Huawei Cloud in sub-Saharan Africa, and the subject was DeepSeek, a buzzy new entrant in the global artificial-intelligence race.<\/p>\n

Huawei Technologies Co. and DeepSeek\u2019s parent, High-Flyer, started collaborating a couple years ago, and now, Huawei is bundling access to the large language model with its own storage and cloud computing services. Li\u2019s pitch is that China\u2019s DeepSeek is capable of matching Silicon Valley\u2019s OpenAI for a fraction of the cost and it can run on less-expensive hardware.<\/p>\n

\u201cDeepSeek is so hot,\u201d Li said during the gathering, overlooking the city\u2019s business district. \u201cNo one wants to talk about anything else.\u201d<\/p>\n

He couldn\u2019t have devised a better pitch for his audience. Outside of South Africa, computing resources on the continent are often expensive and scarce. Making AI cheaper and less power hungry stands to put the world\u2019s most in-demand technology within reach of millions more people \u2014 and to empower African startups to design products for African users.Li clicked through a slide deck, presenting packages tailored to all levels of users and businesses: a free tier, pay-as-you-go hourly rates for DeepSeek models hosted on Huawei Cloud and more compute-intensive options for developers building chatbots and apps. For governments, he explained how private cloud systems could be physically installed in offices and ministries.<\/p>\n

The breakfast event was organized by Shikoh Gitau, Qhala\u2019s chief executive, who is overseeing the development of her company\u2019s own AI-powered chatbot. Over the previous year, the Kenyan computer scientist experimented with a roster of Western models \u2014 Anthropic\u2019s Claude, Google\u2019s Gemini, Meta\u2019s Llama. Each impressed her, but none made financial sense for a cost-conscious young business that was building large-scale applications. Then, in January, DeepSeek entered the market.<\/p>\n

\u201cI celebrated when I first heard about DeepSeek,\u201d Gitau said, citing its \u201creally, really low\u201d price points. She soon migrated Qhala\u2019s chatbot to the Chinese-made system. Now, Li is hoping her decision will inspire other African entrepreneurs and enterprises to follow suit.<\/p>\n

Although much of the world\u2019s attention has been focused on Western tech companies vying for lucrative corporate contracts in the US and Middle East, the meeting in Nairobi illustrates how their Chinese rivals are taking a different approach. OpenAI and its American competitors have focused almost exclusively on proprietary AI \u2014 models whose software, training data and algorithms are entirely controlled by their parent companies, with customers paying for access. Chinese firms like Huawei and Alibaba Group Holding Ltd., by contrast, are courting Africa\u2019s startups and innovation hubs with open-source AI models \u2014 ones that can be accessed and modified for free, letting companies build products without expensive licenses.<\/p>\n

This strategy, with parallels to China\u2019s Belt and Road Initiative for physical infrastructure, is not designed for immediate profit. Africa\u2019s entire digital economy, valued at roughly $180 billion, pales in comparison to OpenAI\u2019s $500 billion valuation in recent share sales. Instead, it\u2019s a long-term bid for customers, soft power and the vast troves of data that will shape the future of artificial intelligence.<\/p>\n

When it comes to AI, it\u2019s \u201call about spheres of influence,\u201d said Akhil Bhardwaj, an associate professor at the University of Bath who studies the implications of the technology\u2019s adoption. Publicly, Chinese officials have touted the benefits of democratizing AI and expressed concern about poorer countries falling behind. At the World AI Conference in Shanghai in July, Premier Li Qiang declared that \u201cevery country, enterprise, and group should have equal rights to develop and utilize AI.\u201d To achieve this, he offered China\u2019s technical skills to \u201chelp countries around the world, especially those in the global south.\u201d<\/p>\n

To some critics, this carries ominous echoes of Belt and Road programs that helped some poor countries build critical infrastructure like ports, highways and airports, but left them heavily indebted and financially dependent on Chinese suppliers.<\/p>\n

In Africa, as in Latin America and Southeast Asia, China has a backend advantage. Its AI products flow into a multi-tiered tech infrastructure that, with the help of generous state subsidies, Chinese companies have spent years building. As American tech firms targeted wealthy regions, Huawei courted emerging market consumers with low costs and aggressive marketing. Huawei, now the world\u2019s top telecom equipment provider, and ZTE Corp. have supplied much of Africa\u2019s equipment for data centers, 5G wireless systems and fiber-optic networks. Chinese companies also dominate further down the tech stack: Transsion controls much of Africa\u2019s smartphone market, with Xiaomi Corp. and Honor gaining ground, and ByteDance Co.\u2019s TikTok is one of the most downloaded apps.<\/p>\n

The outsized role that Chinese companies play in overseeing Africa\u2019s tech infrastructure has alarmed some privacy experts, who worry that there are no safeguards in place to keep sensitive data from ending up in Beijing. That\u2019s drawn attention from a US government keen to constrain China\u2019s AI expansion, which Huawei\u2019s Li alluded to during his presentation \u2014 \u201csome other countries don\u2019t like us to grow up.\u201d<\/p>\n

Yet to many tech entrepreneurs in Africa, China\u2019s lightweight, low-cost AI models are the best option for building. \u201cAll over Africa, small teams are working to fine-tune DeepSeek for local applications,\u201d said Vukosi Marivate, a professor of computer science at the University of Pretoria and a co-founder of the research lab Lelapa AI.<\/p>\n

\u201cWe\u2019ll start seeing results later this year.\u201d<\/p>\n

Olubayo Adekanmbi, the co-founder and chief executive officer of EqualyzAI, a Lagos-based startup that tailors small-scale AI models for African companies, never wanted to work with large-language models. As he saw it, they were too expensive, demanded too much computing power, and Nigeria simply didn\u2019t have the infrastructure to ensure they could run properly. Instead, he wanted to build lightweight, purpose-built models trained on African data. Then Chinese founders began open sourcing their models. \u201cChinese models offer flexibility, lower cost, and the potential for local data sovereignty,\u201d said Adekanmbi.<\/p>\n

In Nigeria, OpenAI\u2019s GPT and Google\u2019s Gemini models are struggling for adoption because of high costs, licensing restrictions and lack of customization to local languages for its population of nearly 240 million people. \u201cIssues such as data privacy concerns, regulatory uncertainty and the risk of vendor lock-in deter many Nigerian organizations from relying on proprietary Western AI platforms,\u201d said Adekanmbi.<\/p>\n

To do this, EqualyzAI\u2019s engineers used DeepSeek\u2019s open-source architecture as scaffolding to start creating specialized small models as well as automated smart assistants. The vast majority of data in Africa hasn\u2019t been digitized, so contractors across the continent are paid to gather agricultural, medical and financial records, as well as audio in Yoruba, Hausa and Nigerian-accented English. EqualyzAI then trained individual models on the relevant datasets, and tweaked the open weights \u2014 the code that instructs an AI model to emphasize or ignore certain information \u2014 for each customer. The resulting chatbots and apps are now being used by fintech companies, e-learning platforms and health-care startups. Like all companies that build on DeepSeek, they can choose to either host their products locally and pay for computing and storage infrastructure, or go through providers like Huawei. EqualyzAI does the former.<\/p>\n

Unlike proprietary models, which charge for licensing and infrastructure use, DeepSeek customers are charged for the computations the model performs. Pricing is based on the use of tokens, words or small chunks of text that the model processes to generate new content. Huawei offers DeepSeek users two million free tokens a day.<\/p>\n

For African startups like EqualyzAI, DeepSeek is \u201corders of magnitude\u201d cheaper than competitors, Adekanmbi said. DeepSeek Chat, for instance, charges 27 cents to process one million tokens of query sent and $1.10 for every million tokens it generates in response. OpenAI\u2019s GPT-4o charges $5 to process the same amount of tokens of query sent and $15 to produce the same amount of tokens in response. If EqualyzAI used GPT-4o, the startup would pay about $12,500 a month to train a small-language model for an e-learning platform, as opposed to the roughly $2,700 per month it now pays DeepSeek for the same task.<\/p>\n

Gitau, who worked with Google and Microsoft Research before setting up Qhala five years ago, explained that there are many reasons why Silicon Valley models aren\u2019t well suited for users in Africa. As US-made models require more tokens to process foreign and unfamiliar words, computing costs often end up being higher for users not working in English. And because the training data is largely Western, the models also miss cultural nuance, and will sometimes wrongly assume a person\u2019s gender based on their name or generate imagery that reflects racial stereotypes. \u201cIn the world according to San Francisco,\u201d she said, \u201cAfrica\u2019s context is erased.\u201d<\/p>\n

Silicon Valley companies have made efforts to integrate some of the more than 2,000 languages and dialects spoken across Africa into certain of their models. This month, OpenAI collaborated with the University of Lagos to host a two-day OpenAI Academy event in an attempt to reach more builders and users. Earlier, OpenAI and Meta partnered with French telecom Orange to train bespoke open-source models on Wolof and Pulaar. Yet US-made open-source models are still in the very early stages of development.<\/p>\n

Meanwhile, Cereloop, a Nigerian education startup, has been fine-tuning Alibaba\u2019s Qwen model to build AI products that students can use offline to study science and math. (Qwen is also built into Transsion\u2019s popular Tecno brand smartphones.) The Nairobi-based cloud infrastructure provider Pure Infrastructure Ltd. is using DeepSeek-based models to explore security applications for Telum Technologies, a digital infrastructure provider, and to analyze economic data for a large Kenyan enterprise. Innova, a fintech startup in Kenya, uses DeepSeek to analyze business data and evaluate investment risks, while Angani, the biggest cloud provider in East Africa, deploys DeepSeek alongside Llama and other open-source models.<\/p>\n

\u201cMany technology companies use Chinese models like DeepSeek and Qwen,\u201d said Phares Kariuki, the chief executive officer of Pure Infrastructure. \u201cLarger companies in Africa, too, have started adopting them, but not at scale.\u201d<\/p>\n

Hanging over any conversation about AI in Africa is the fear that the continent\u2019s startups might end up caught in the middle of a US-China trade war. In May, the US Department of Commerce tightened restrictions on Chinese AI hardware, warning that the use of Huawei\u2019s Ascend AI chips anywhere in the world violates US export controls. Should the Trump administration take further measures, there is fear that \u201cAfrica could be shut out,\u201d said Terrence Okeke Taylor, executive chairman of the African Academy of Artificial Intelligence, which advises banks, businesses and governments on AI use.<\/p>\n

The stakes of relying too heavily on any single country\u2019s tech were vividly illustrated for three days in mid-June, when AI giants Alibaba, ByteDance, Tencent Holdings Ltd. and DeepSeek \u2014 whose servers are located in China \u2014 disabled their image-recognition and instant Q&A features on consumer-facing products to prevent cheating during China\u2019s intensely competitive Gaokao, or university entrance exams. Suddenly, chatbots, image recognition tools, and AI analytics apps in Accra, Lagos and Nairobi experienced slowdowns and service interruptions that their creators were powerless to fix.<\/p>\n

It was \u201ca perfect illustration of the continent\u2019s growing digital dependency on foreign AI infrastructure,\u201d Nairobi-based AI strategist Sidney Essendi wrote on LinkedIn.<\/p>\n

Such incidents have generated concern around another sensitive issue \u2014 who can access the data that big tech companies host on their servers. Huawei technicians have been accused of helping African governments, including authoritarian ones, spy on political opponents. Huawei and the governments deny the claims, but questions remain about the risk of bringing in Chinese companies to oversee surveillance technologies and smart city programs in Africa.<\/p>\n

While most big Western models typically comply with European laws governing transparency around data collection and processing, which strictly control how they interact with customers\u2019 data, DeepSeek\u2019s chatbot does not. Instead, it often stores user data \u2014 including chat histories, prompts and location data \u2014 on servers in China, which can be accessed by the government. DeepSeek\u2019s privacy policy now allows users to request or appeal by email to address their privacy concerns.<\/p>\n

Yet, due to data security concerns, DeepSeek\u2019s chatbot isn\u2019t available in Italy, and Germany has asked Apple and Google to remove the app from their stores. In South Korea, it was briefly pulled from app stores for transferring sensitive personal data to overseas entities, including a ByteDance affiliate, without user consent.<\/p>\n

DeepSeek and Huawei did not respond to emailed requests for comment on privacy issues.<\/p>\n

For some entrepreneurs, data privacy is a concern. James Ong\u2019ang\u2019a, CEO and founder of the Nairobi-based education tech company LoHo Learning, said that it was a factor for him when choosing an AI model. \u201cFor child-centered learning,\u201d Ong\u2019ang\u2019a said, \u201cWestern open-source models deployed on edge devices offer a more responsible, secure, and future-proof approach for Africa, at least at this moment.\u201d<\/p>\n

Still, some African tech leaders view the controversy as overblown. \u201cWestern model makers can\u2019t convince us that China AI models are spying on us,\u201d said Lacina Kone, the director general and CEO of Smart Africa, an organization tasked with defining the continent\u2019s digital agenda. Others acknowledge the risk, but dismiss the notion that there are better alternatives. \u201cThere\u2019s also a debate in Africa whether Western or Chinese AI models are colonizing Africa through data,\u201d said Taylor of the African Academy of Artificial Intelligence. \u201cIt\u2019s an ongoing thing.\u201d<\/p>\n

With the world\u2019s fastest-growing population and a digital economy that\u2019s expected to swell to $712 billion by 2050, governments and startups across Africa are starting to ask whether the continent\u2019s tech future could be more independent. In the best-case scenario, that would mean building AI infrastructure and ecosystems, training AI models and apps on African languages and data, and housing and running everything locally.<\/p>\n

At the moment, that\u2019s a long way off. The vast majority of Africa lacks the investment, energy infrastructure, engineering talent and ability to efficiently digitize vast amounts of data, and none of this is likely to be within reach anytime soon. So for now, companies that can afford to are hedging their bets. Some are already blending Chinese-backed cloud services and AI models with American-made AI products. Africa\u2019s biggest telecommunications company, MTN Group Ltd., has started building out its own AI data centers, and said it develops applications on its existing platforms or in-house where possible, or partners mostly with Western AI firms that can offer scalable technologies.<\/p>\n

The NCBA Group, a financial services conglomerate with more than 60 million customers across East and West Africa, said it\u2019s considering adding DeepSeek to the suite of Western AI products it currently uses.<\/p>\n

\u201cWhile we expect Chinese models to play a role, especially in the short term,\u201d said Patrick Kariuki, chief data officer at NCBA Group, \u201cthe path forward will require a more balanced, multi-model approach.\u201d<\/p>\n

bloomberg<\/b><\/p>\n

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