Why Microsoft, Facebook-parent Meta are sticking with massive AI investments despite DeepSeek challenge

Despite recent shockwaves sent through the tech industry by Chinese AI startup DeepSeek, Microsoft and Meta CEOs have defended their companies’ massive investments in artificial intelligence (AI). DeepSeek’s claims of achieving comparable AI performance at a fraction of the cost have raised questions about the sustainability of big tech’s AI spending strategies.

In their respective post-earnings calls on Wednesday, both Satya Nadella of Microsoft and Mark Zuckerberg of Meta emphasised the strategic importance of investing heavily in AI infrastructure.