DeepSeek and Latin America’s AI Crossroads

China’s DeepSeek AI offers Latin America a chance to develop AI independently but raises concerns about reliance on Chinese technology. While it can boost regional AI innovation with lower infrastructure costs, countries must invest in local AI ecosystems to avoid digital dependency. Latin American governments must act now to secure AI sovereignty through education, investment, and regional cooperation.

CONTENTS:

• A Shift in AI Power
• A Path to AI Independence
• A Launchpad for Innovation
• A Potential Trojan Horse?
• Steps Toward AI Sovereignty

DeepSeek and Latin America’s AI Crossroads

As the U.S. and China continue their battle for AI supremacy, a new contender—DeepSeek—is reshaping the AI landscape in Latin America. Developed in China, this AI chatbot made waves globally due to its significantly lower development costs compared to leading U.S. models like OpenAI’s GPT-4 and Google’s Gemini, while also requiring far less computing power. This innovation presents a pivotal moment for Latin America, offering both an opportunity for technological self-sufficiency and the potential risk of increased digital dependence.

China’s latest large language model (LLM) presents Latin America with an opportunity to embrace AI on its own terms—but it also raises concerns about dependency.

Since its debut in January, the Chinese chatbot has quickly climbed to the top of global app download charts.

A Shift in AI Power

BUENOS AIRES— As the rivalry between the U.S. and China over artificial intelligence intensifies, a new contender—DeepSeek—is reshaping the AI landscape in Latin America. This Chinese-developed AI chatbot gained international attention due to its significantly lower production costs compared to leading U.S. models like OpenAI’s GPT-4 and Google’s Gemini, while also requiring much less computational power.

This innovation presents a turning point for Latin America. DeepSeek could either serve as a stepping stone toward technological self-sufficiency or open the door to a new form of digital reliance. While it may not yet match the sophistication of GPT-4 or Gemini, its low resource requirements make it particularly appealing to countries with limited infrastructure budgets. For lower-middle-income nations struggling with financial constraints and access barriers to cutting-edge AI, DeepSeek provides a unique chance to advance their own AI capabilities.

However, this opportunity comes with challenges. To secure AI autonomy, Latin America must start investing in its own AI ecosystem now.

A Path to AI Independence

At its core, DeepSeek does more than just make AI accessible—it challenges the dominance of established players in shaping its evolution. By empowering resource-limited nations to develop AI solutions tailored to their specific needs, it reduces dependence on foreign tech giants and offers a rare chance to build local AI ecosystems. This could weaken the stronghold of U.S. and Chinese firms in the global AI space.

DeepSeek suggests that the future of AI may not be dominated by a single entity but could instead involve multiple competing models coexisting. If DeepSeek proves to be as efficient and scalable as anticipated, it may accelerate the decentralization of AI, allowing emerging economies to carve out their own technological paths. Imagine a small-scale farmer in rural Colombia using AI-powered weather forecasts to protect crops from droughts and floods.

A Launchpad for Innovation

DeepSeek’s ability to process regional languages such as Spanish and Portuguese could strengthen Latin America’s AI sector by reducing its dependence on English-language models. Moreover, its efficient operation on mid-range hardware challenges the belief that only countries with abundant, low-cost energy—such as hydro-rich Brazil or energy-producing Argentina—can build AI ecosystems. Instead, nations with moderate energy costs but strong digital infrastructure, such as Mexico and Colombia, could position themselves as emerging AI hubs, avoiding the high expenses of running power-intensive GPU clusters.

Latin America is not starting from scratch when it comes to AI innovation. Brazil’s Fiocruz is already integrating AI into precision farming, while Argentina’s public prosecutor’s office has developed PROMETEA, an AI system that automates legal document processing and accelerates judicial decisions. DeepSeek’s efficiency could enhance these efforts and revolutionize other sectors, such as healthcare, where AI-powered diagnostics could address gaps in rural medical services.

Additionally, Latin American initiatives are leveraging AI to reduce operational costs and environmental impacts—such as Chilean mining giant Codelco’s sustainability efforts, Mexico’s satellite-based environmental monitoring for tracking deforestation and water usage, and Colombia’s fintech startup Quipu, which provides alternative credit scoring for micro-entrepreneurs. A significant milestone is Chile’s upcoming Latam GPT, an open-source regional LLM set to launch in June 2025.

A Potential Trojan Horse?

DeepSeek is more than a technological advancement—it’s also a strategic move in global geopolitics.

Developed by Chinese researchers and backed by state-linked institutions, DeepSeek is part of China’s broader effort to expand its AI infrastructure globally, particularly in developing nations. Unlike the U.S., which focuses on creating ever-more-powerful models, China is using AI diplomacy to establish influence over digital sovereignty in emerging markets. While this offers benefits, it also presents risks for Latin America.

Historically reliant on Western technologies while struggling with barriers to high-end hardware, Latin American nations cannot afford to be passive observers. By leveraging competition between AI superpowers, they can negotiate better technology transfer agreements, diversify partnerships, and avoid overdependence on either Silicon Valley or Beijing. The global semiconductor shortage remains a critical challenge, with supply chains increasingly shaped by political maneuvering.

Escaping U.S. tech dominance does not necessarily mean avoiding risk. Instead, it shifts the vulnerabilities elsewhere. While DeepSeek provides greater access to AI, Latin American governments must carefully assess the trade-offs.

If DeepSeek’s core infrastructure remains under Chinese control, Latin America risks losing ownership over the data it generates. Instead of fostering self-sufficiency, the region could become a data provider fueling China’s AI expansion. Furthermore, AI models reflect the data they are trained on—if DeepSeek relies primarily on Chinese datasets, its outputs may not align with Latin American culture and values, potentially leading to misrepresentation.

AI dependence can also be a geopolitical tool. The U.S. has used semiconductor sanctions to slow China’s AI development. If Latin America relies too heavily on Chinese-built AI infrastructure, it could face similar vulnerabilities in the future.

Ultimately, AI’s trajectory may not be defined by a single dominant technology but by a mix of competing models and standards. DeepSeek is an early indication of this evolving landscape.

Steps Toward AI Sovereignty

For Latin America, investing in AI is no longer optional—it’s essential for staying competitive. Without local investment, startups in the region will struggle to scale, leaving AI development in the hands of foreign corporations. Governments must take action by creating AI investment funds that support domestic advancements in agriculture, healthcare, and finance—before another wave of technological innovation bypasses them.

The region already boasts world-class AI research institutions, including Brazil’s CPQD, Argentina’s CONICET, and Chile’s AI & Data Science Lab. However, without strong investment in AI education and local innovation incentives, the best minds will continue migrating to foreign tech firms instead of contributing to Latin America’s AI ecosystem.

Some progress has been made—Uruguay’s Plan Ceibal and Colombia’s government-sponsored AI boot camps are positive steps—but more is needed. Governments must expand AI training programs, foster university collaborations with startups, and incentivize AI entrepreneurship to prevent brain drain. Establishing AI-focused research centers and innovation hubs can help develop solutions tailored to regional challenges.

Regional cooperation will also be key. Alliances such as Mercosur, CELAC, and the Pacific Alliance can provide leverage in negotiating fair AI access, securing technology transfers, and preventing overreliance on a single foreign partner. A fragmented approach will weaken individual nations, leaving them at the mercy of global AI superpowers. Data sovereignty regulations are critical to ensuring that AI models trained on local data remain under regional control rather than feeding into foreign-owned infrastructures.

Without bold action, Latin America risks remaining a consumer of foreign AI rather than a driver of innovation. The time to invest in local AI capabilities, strengthen regional alliances, and demand transparency is now—before the next wave of AI development reshapes the world.

The real question is not whether AI will transform the region, but who will be in control when it does.