DeepSeek created an AI boom in China and has more than doubled usage as it attracts new users and then holds them, according to a research report from Microsoft Research.
In a paper, Microsoft Research took anonymized telemetry data on how people are using AI globally. The data complements other use case data from LLM providers like OpenAI and Anthropic.
First, it’s worth noting that Microsoft’s telemetry data has its own biases, but is a solid data set on usage. Microsoft’s telemetry data is skewed toward desktop usage and the company’s demographic.
In a paper, which was used in a Financial Times visual story, Microsoft researchers wrote:
“We introduce AI User Share, a novel indicator that estimates the share of each country’s working-age population actively using AI tools. Built from anonymized Microsoft telemetry and adjusted for device access and mobile scaling, this metric spans 148 economies and provides consistent, real-time insight into global AI diffusion. We find wide variation in adoption, with a strong correlation between AI User Share and GDP. High uptake is concentrated in developed economies, though usage among internet-connected populations in lower-income countries reveals substantial latent demand.”
From a market share perspective, Microsoft telemetry doesn’t give you any real surprises. The countries leveraging AI the most tend to be the richest.
But what really sticks out is the DeepSeek launch in January. When DeepSeek initially launched, the big takeaway is that the model from China offered a contrast to the brute force compute approach offered by the US.
After a few months, the importance of DeepSeek really revolves around putting China into the AI race. China is now the largest AI market.
Microsoft noted:
“China’s AI user share has more than doubled from 8% to 20%, making it the world’s largest AI market, with an estimated AI user base exceeding 195 million. The growth in China’s AI user population also appears to be sustained, suggesting that DeepSeek is not only attracting new users, but also keeping them engaged.”
