Microsoft has announced ambitious plans to boost adoption of its artificial intelligence (AI) technologies in Africa.
The US tech giant has unveiled a plan to train 3 million Africans on AI technologies through partnerships with schools, universities, and other institutions, with a focus on the continent’s major tech hubs: South Africa, Kenya, Nigeria, and Morocco.
Microsoft has also partnered with MTN Group, the continent’s largest telecommunications company, to distribute Microsoft 365 and Microsoft Copilot – a generative AI tool designed to help individuals and businesses boost productivity and efficiency – to MTN’s 300 million subscribers.
The firm has also said it will be investing around $330m in South Africa by the end of 2027 to expand its cloud and AI capacity.
Chinese firms take root
The investments are intended to cement Microsoft as one of the most influential US tech giants in African AI.
Chinese AI firms are already taking root in Africa, where their technologies are often seen as cheaper than Western equivalents. In January last year, China’s DeepSeek launched its “R1” model, an open-source large language model, which it said had been developed for just $6m. By contrast, ChatGPT-4 is reported to have cost the US firm Open AI around $100m to develop.
These lower costs have allowed DeepSeek to establish roots in several African markets. DeepSeek’s open-source models account for about 20% of chatbot use in Ethiopia and Zimbabwe, for example, and are supported by integration into long-standing Chinese investments in telecommunications and fibre network infrastructure under the Belt and Road Initiative.
Kennedy Chengeta, an AI-focused academic and entrepreneur based in Pretoria, tells African Business that competition between Western and Chinese firms is heating up on the continent.
“Microsoft’s efforts to counter the influence of DeepSeek in Africa reflect a broader strategic competition in the global artificial intelligence ecosystem,” he says.
“Africa is increasingly viewed as a critical frontier for AI adoption because of its rapidly expanding digital economy, youthful developer population, and governments seeking scalable digital infrastructure.”
“As AI becomes foundational to economic development, major technology companies are positioning themselves to shape the continent’s technological trajectory.”
Chengeta notes that the significantly lower costs associated with DeepSeek has broadly been welcomed in Africa, particularly by start-ups that often face budget constraints, and has proved a powerful force in lowering the barriers to AI adoption.
The power of Microsoft
However, he argues that Microsoft’s existing relationships in Africa – and the sheer size of the US tech giants – means that the firm is well positioned to make an impact.
“One of Microsoft’s key strengths lies in its deep integration with African institutions. Through its Azure cloud platform, developer tools, enterprise software, and academic partnerships, Microsoft has spent years building relationships with governments, banks, universities, and startups,” Chengeta says.
“These institutional ties create a network effect that is difficult for new entrants to replicate quickly.”
The increased competition that is taking place in Africa – both commercial and geopolitical – potentially creates opportunities for the continent, which, at least in theory, could leverage this to ensure better access to AI tech at affordable rates.
As Chengeta points out, “Africa’s rapidly growing technology sector stands to benefit from increased investment, improved infrastructure, and greater access to advanced AI tools.”