DeepSeek's AI Breakthrough Raises Questions for Tech Giants
DeepSeek's announcement of its cost-effective AI model has sparked concerns about the overspending of major tech companies like Microsoft and Meta on their AI infrastructure.
Microsoft and Meta's Response
During recent earnings calls, Microsoft CEO Satya Nadella expressed optimism about DeepSeek's potential to enhance AI's ubiquity. Meta CEO Mark Zuckerberg downplayed the threat, emphasizing the industry's constant evolution.
Analysts' Skepticism
Analysts remain skeptical of DeepSeek's claims, questioning the exclusion of research and experimentation costs from its $5 million training figure. They also criticize the use of distillation, a technique that leverages existing models.
Meta and Microsoft's Continued Investment
Despite DeepSeek's claims, Meta and Microsoft are maintaining their AI infrastructure investments. Zuckerberg believes in AI's potential for providing more precise responses with increased computing power. Nadella highlights the benefit of scalable data centers for long-term growth.
Upcoming Earnings Reports
The market eagerly anticipates earnings reports from other Big Tech companies, including Apple, Intel, Google, and Amazon, for their perspectives on the recent AI developments.