Microsoft (MSFT) Has a New Plan to Counter DeepSeek

FomoAnxiety · 2026-03-12T05:26:30+00:00

Microsoft is intensifying its AI initiatives in Africa, planning to train three million people in AI skills, and partnering with MTN Group to expand access to Microsoft 365. This move is in response to competition from China's DeepSeek, which has gained market share in the region.

FomoAnxiety

2026-03-12 05:26:30

Abstract generation in progress

The global AI race is spreading beyond the U.S. and Europe. Microsoft MSFT -0.22% ▼ is now turning to Africa, aiming to expand the use of its AI tools while competing with China’s fast-growing platform, DeepSeek.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

The company said it plans to train three million people across Africa in AI skills this year. The effort will focus on key markets including South Africa, Kenya, Nigeria, and Morocco, working with schools, universities, and other institutions.

Microsoft Expands Its AI Push in Africa

The training program is meant to boost the use of Microsoft’s AI services, including Copilot and Azure, while helping developers, students, and businesses learn how to use the technology.

Microsoft is also partnering with MTN Group MTN +2.47% ▲ , Africa’s largest telecommunications provider, to offer Microsoft 365 and its Copilot AI assistant to roughly 300 million subscribers.

The company sees strong potential in the region as internet use and digital services continue to grow across many African economies.

DeepSeek Is Gaining Ground

Microsoft’s move comes as DeepSeek, a Chinese open-source AI platform, gains traction in several African markets. According to Microsoft data, the platform accounts for about 11% to 14% of chatbot use across the region, with its share reaching around 20% in countries such as Ethiopia and Zimbabwe.

To strengthen its presence, Microsoft is also investing in infrastructure. The company plans to spend 5.4 billion rand (about $330 million) to expand its cloud and AI capacity in South Africa by next year. It is also exploring plans for a geothermal-powered data center in Kenya.

Is Microsoft a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 5.6% rally in its share price over the past year, the average MSFT price target of $594.02 per share implies 46.72% upside potential.

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes