Meta Platforms, Microsoft show AI spending can be double-edged sword

On a day US tech stocks lost nearly $1 trillion on concerns about artificial intelligence spending, Meta Platforms Inc. hit a record high — signaling that investors were keeping the faith when it came to its own AI plans.

The Facebook parent saw its stock undeterred by the perceived challenge posed by Chinese startup DeepSeek — whose AI model is open sourced, like Meta’s Llama. Meta’s recent strength stands in contrast to Microsoft Corp., which has seen its shares falter on concerns about heavy AI spending — including its stake in OpenAI, a key competitor to DeepSeek.