Meta, Nvidia, and other tech giants react to DeepSeek's competitive, cost-efficient models that challenge established market players.
Leaders at Microsoft and Meta told investors that China’s DeepSeek doesn’t harm their businesses and that they will still spend billions on AI data centers.
Both Meta and Microsoft committed to huge investments in artificial intelligence, despite new Chinese software outperforming American rivals at a lower cost.
A new game of ‘my data center is bigger than yours’ started this week with the announcement of OpenAI’s Project Stargate.
"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.
The Microsoft CEO will have to perform a delicate balancing act over the next four years to keep his company from becoming a target.
DeepSeek delivers high-performing, cost-effective models using weaker GPUs, questioning the trillion-dollar spend on US AI firms like OpenAI.
Shares of AI infrastructure providing companies climbed on Thursday after positive commentary from Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) on capital expenditure related to the technology.
Chinese AI startup DeepSeek burst on the scene this week with its latest AI model, which the startup claims performs as well as leading AI from OpenAI, Meta, and Anthropic — but at a far lower cost to develop.
On the political landscape, tech has made the biggest pivot. Amid threats of heavy regulation and even being broken up under Biden, Silicon Valley has embraced Donald Trump’s administration. The likes of Zuckerberg, Apple’s Tim Cook, Open AI’s Sam Altman and of course Elon Musk, all at the centre of power at last week’s inauguration.
Asia markets are mostly higher following gains on Wall Street driven by Tesla, IBM and Meta Platforms after strong profit reports