DeepSeek's AI Advancements Spark Tech Earnings Buzz
DeepSeek's recent AI breakthrough has ignited market speculation about tech giants' AI spending. Nvidia (NVDA) shares plummeted over 17%, raising concerns about Microsoft (MSFT) and Meta (META) overspending.
However, during their earnings calls, both companies expressed optimism regarding DeepSeek's advancements and their impact on their businesses.
Microsoft CEO Satya Nadella emphasized the potential for AI to become more ubiquitous, benefiting companies like MSFT. Meta CEO Mark Zuckerberg downplayed the threat, suggesting DeepSeek's announcement is part of the industry's ongoing evolution.
DeepSeek claims to have trained its AI model for significantly less than U.S. companies, raising questions about potential cost inefficiencies. However, analysts have expressed skepticism, citing the company's exclusion of certain research costs.
Zuckerberg emphasized Meta's continued investment in AI data centers, citing the need for more powerful models. He downplayed the impact of DeepSeek's claims on Meta's plans.
Nadella highlighted Microsoft's scalable data center strategy, emphasizing the long-term value of investments. The company plans to spend $80 billion on AI development by fiscal 2025.
Other Big Tech companies, including Apple (AAPL), Intel (INTC), Google (GOOG), and Amazon (AMZN), are expected to address AI developments in their upcoming earnings reports.
Analysts anticipate further discussions on the competitive landscape and the potential implications of DeepSeek's advancements for tech industry investments.