Funding: High Compute Costs Threaten Africa’s $1.3bn AI Investment

African artificial intelligence (AI) businesses have attracted $1.3 billion in disclosed funding over the past decade, but high computing costs, inadequate infrastructure and limited access to growth capital are threatening the sustainability of startups across the continent.
A new study, AI Made in Africa: Voices from AI Businesses Across Africa, published by the German development agency, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), in partnership with Briter Bridges, found that 311 AI companies across more than 35 sectors secured funding between 2016 and 2025.
However, the report indicates that the funding has not translated into widespread profitability, with man...