DeepSeek Technology Shocks the AI World
Technology
After the Chinese company DeepSeek announced unexpected technological breakthroughs in the field of artificial intelligence (AI), global tech giants Microsoft and Meta were forced to justify their massive AI investments.
DeepSeek claims to offer high-performance AI computing at significantly lower costs, raising serious concerns in the U.S. tech industry. Its products could be more efficient and cost-effective than those of Western competitors.
In response, Microsoft and Meta executives emphasized the importance of investing in AI technology, arguing that building large-scale computing infrastructure is crucial for maintaining competitiveness.
Meta CEO Mark Zuckerberg stated that significant capital investments in AI infrastructure will be a long-term strategic advantage.
Microsoft CEO Satya Nadella also stressed that creating massive computing power is essential for the company’s success in AI.
Currently, Microsoft has allocated $80 billion for AI development, while Meta has pledged $65 billion—a stark contrast to the $6 million spent by DeepSeek on its AI model development.
However, U.S. tech leaders argue that DeepSeek’s expenses only reflect computing costs, not the full development investment. Still, investors are growing impatient, as AI technologies continue to demand enormous investments without yet generating substantial returns.
Despite being seen as the AI frontrunner due to its partnership with OpenAI, Microsoft saw its stock price drop 5% after reporting lower-than-expected growth projections for its Azure cloud business.
Meta has also poured significant funds into AI, but weak sales forecasts created mixed reactions among investors.
Zacks Investment Management portfolio manager Brian Mulberry stated, "We want to see a clear monetization roadmap for all these massive AI investments."
Meanwhile, Futurum Group analyst Daniel Newman commented, "This week was a wake-up call for U.S. tech giants."
Microsoft CFO Amy Hood announced that AI-related expenses will remain high until 2026, though a gradual decline is expected starting in 2025.
In response, Microsoft and Meta executives emphasized the importance of investing in AI technology, arguing that building large-scale computing infrastructure is crucial for maintaining competitiveness.
Meta CEO Mark Zuckerberg stated that significant capital investments in AI infrastructure will be a long-term strategic advantage.
Microsoft CEO Satya Nadella also stressed that creating massive computing power is essential for the company’s success in AI.
Currently, Microsoft has allocated $80 billion for AI development, while Meta has pledged $65 billion—a stark contrast to the $6 million spent by DeepSeek on its AI model development.
However, U.S. tech leaders argue that DeepSeek’s expenses only reflect computing costs, not the full development investment. Still, investors are growing impatient, as AI technologies continue to demand enormous investments without yet generating substantial returns.
Despite being seen as the AI frontrunner due to its partnership with OpenAI, Microsoft saw its stock price drop 5% after reporting lower-than-expected growth projections for its Azure cloud business.
Meta has also poured significant funds into AI, but weak sales forecasts created mixed reactions among investors.
Zacks Investment Management portfolio manager Brian Mulberry stated, "We want to see a clear monetization roadmap for all these massive AI investments."
Meanwhile, Futurum Group analyst Daniel Newman commented, "This week was a wake-up call for U.S. tech giants."
Microsoft CFO Amy Hood announced that AI-related expenses will remain high until 2026, though a gradual decline is expected starting in 2025.
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