Discussion in the U.S. about AI mostly focuses on competing with China. While the U.S. aims for the most advanced AI technologies, China is capturing the global market with affordable solutions. Developing countries prefer cost-effective models that get the job done, not the high-end tech that the U.S. prioritizes. China’s emphasis on affordability is enabling them to expand their influence across regions such as Africa, Asia, and Latin America while establishing long-term partnerships.
Choosing Chinese technology carries risks. It may lack security, posing national security threats. China’s tech also enables countries to surveil citizens. Open-weight models from China, like those from Huawei and Alibaba, are accessible for adaptation, unlike American models tied to company services. Huawei announced AI services in nine more nations, including Brazil, Indonesia, and South Africa, extending access to their AI models.
In Egypt, Huawei provides startup incentives with cloud credits and Arabic-language model training, reducing startup costs. Microsoft noted significant usage of Chinese AI models like DeepSeek in Africa. These models come with partnerships and easy access, encouraging adoption.
In Latin America, Chinese cloud providers hold major market shares following a 2025 study. They dominate in countries like Brazil, Argentina, and Mexico. In Asia, countries like Indonesia and Malaysia rely heavily on Chinese providers. As these suppliers dominate AI markets in developing economies, China’s geopolitical influence grows. Switching systems becomes challenging and disrupts public services.
The implications for information dissemination are significant. U.S. testing showed DeepSeek often repeated Chinese narratives more than U.S. models. As AI becomes a source of information about history and events, these narratives may gain global traction.
U.S. businesses could face reduced sales of software, equipment, and services, impacting their long-term sustainability. China’s Digital Silk Road strategy aids its firms with financing and subsidies, reinforcing its technological partnerships.
The U.S. response is gradual, promoting American AI tech and making export financing accessible. However, these measures fall short in countries with tight budgets. The U.S. must increase funding for AI technology acquisition in interested countries, invest in local training, and support tools in native languages.
China leads in the AI race among developing nations, posing a risk to U.S. influence and national security. Losing ground would hinder the U.S. from shaping global AI development and usage. Prompt action is crucial to secure competitive standing in this pivotal race.