BY AKINDURO ROTIMI
Since the bubble burst on artificial intelligence in the early 2000s, nations worldwide have been striving to establish themselves as leaders in the artificial game. Tech giants are constantly racing, each trying to outpace the others.
Given AI’s profound socio-economic impact and potential to transform individual lives and corporate and national landscapes, this intense competition is understandable. Its use cases in health, commerce, agriculture etc know no bounds.
In health, we have seen innovations in disease diagnosis. For example, AI-powered tools for detecting tuberculosis emerged recently. This tool aims to enhance the accuracy and efficiency of tuberculosis diagnosis through advanced imaging analysis. Also, efforts are in top gear for related technologies that enhance the easy detection of cancer and other life-threatening diseases.
AI is also playing a transformative role in agriculture, offering solutions that address challenges and promote sustainable practices. In India for example, AI-driven weather forecasts have significantly reduced debts and increased savings for farmers by providing accurate climate predictions. This initiative has prompted a billion-dollar effort to extend such capabilities across Asia and other continents. We have also seen companies integrating sensors, AI, and robotics to increase farming efficiency and sustainability. Start-ups like Loam Bio developed fungal spores to enhance soil carbon capture.
But this is just the beginning. Experts have predicted unprecedented innovation growth arising from AI from the year 2025. Small businesses (that power the economies of most countries around the world) will be the recipients of the dividends of AI.
However, building AI technologies is not a small job. It requires monumental infrastructure and investment. OpenAI CEO Sam Altman publicly stated that his firm’s GPT-4 model cost more than $100 million to train. And just last year, Dario Amodei, CEO of Anthropic, a rival AI technology company, said models currently in development could cost $1 billion to train – and suggested that number could hit $100 billion within just a few years.
The substantial investment required for AI development helps explain why many African countries have been hesitant to participate. However, I believe these financial requirements shouldn’t discourage African nations from taking bold steps toward this transformative technology. Given the significant benefits AI offers, the investment, while considerable, should be viewed as necessary for future growth and development. That is by the way.
Worthy of note in the AI game is the unhealthy rivalry between countries around the world. This arms race plays a significant role in shaping the global AI landscape and the potential consequences for the future of AI and humanity. Notable among them is that between China and America.
A typical example is the U.S. Department of Commerce tightening regulations on exporting advanced computer chips and related technologies to China. These measures aim to restrict China’s access to high-performance semiconductors essential for AI development. The controls also extend to semiconductor manufacturing equipment and design software, further hindering China’s ability to produce cutting-edge AI technologies domestically.
The U.S. also added numerous Chinese companies to its trade blacklist, effectively prohibiting American firms from conducting business with them. This move targets organisations involved in AI and related fields. This action had the potential to curb China’s technological progress by limiting its access to U.S. technologies and components.
The foregoing has led to a tit-for-tat scenario where China accelerates its efforts towards self-sufficiency and indigenous innovation. Both nations often frame AI competition within national security terms, treating it as a zero-sum game.
The intense race gave birth to Deepseek AI founded by Liang Wenfeng in May 2023. The focus of the company is developing open-source large language models (LLMs). However, China’s role in DeepSeek’s emergence and growth has been significant. The company is supported by the Chinese hedge fund High-Flyer, which provided the initial funding and resources.
In January 2025, DeepSeek made waves in the AI industry with the launch of its DeepSeek R1 model. The model quickly garnered attention not just for its impressive performance capabilities, but also for its groundbreaking cost-effectiveness. According to DeepSeek, they developed their AI model in just a few months with an investment of $5.6 million—a remarkably small sum compared to the hundreds of millions or even billions typically spent by major tech companies on similar developments.
Despite its modest development costs, DeepSeek R1 has reportedly demonstrated performance levels comparable to, or potentially exceeding, those of other leading AI models. This efficient development approach allows DeepSeek to offer their AI services at more competitive prices, potentially making advanced AI technology more accessible to a broader range of users.
Lessons for Africa’s social economic development
The DeepSeek breakthrough offers valuable insights for Africa’s AI advancement and economic growth.
Innovation and cost-effectiveness
Deepseek’s achievement demonstrates that significant AI development is possible without massive financial resources, challenging previous assumptions about the barriers to entry in AI technology.
This development is particularly relevant for leading African economies like Nigeria, South Africa, and Egypt. These nations could potentially develop their own AI capabilities through strategic investment and innovation. The relatively modest $5.6 million development cost suggests that African nations could enter the AI race through either direct government funding or by supporting promising tech startups in their growing innovation ecosystems.
DeepSeek’s cost-effective approach proves that AI development isn’t exclusively the domain of wealthy nations or tech giants. By adopting similar innovative and efficient development strategies, African countries could leverage their existing resources and technical talent to build competitive AI technologies.
2. Foster Open-Source Collaboration
DeepSeek’s open-source strategy has accelerated its growth and adoption. By embracing open-source principles, African researchers and developers can collaborate globally, access cutting-edge technologies, and contribute to the global AI community. This will foster innovation and reduce the development costs of this technology.
3. Invest in Talent Development
Building a skilled workforce is crucial for AI advancement. African countries should invest in education and training programs to develop local expertise in AI and data science. This will create opportunities for homegrown innovation and reduce reliance on external talent.
Conclusion and Key Takeaway
Africa faces a multitude of developmental challenges, ranging from food security to healthcare and safety. These issues, though daunting, can be effectively addressed through the innovative use of AI technologies.
While many African nations have been hesitant to fully embrace AI, the barriers that hold them back may not be as insurmountable as they seem. By looking inward and taking decisive steps, African countries can draw inspiration from DeepSeek’s success. This can catalyze the development of AI technologies tailored to solve the continent’s unique challenges, paving the way for sustainable growth and development.
Akinduro Rotimi is the CEO of Reymage Ltd, a pioneering company that leverages AI and data to help businesses optimize their operations and achieve unparalleled success.