Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns world

Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the US technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field.

DeepSeek’s quick progress has stirred doubts about the lead America has in AI with models that it claims can match or even outperform Western rivals at a fraction of the cost, but the US executives said on Wednesday that building huge computer networks was necessary to serve growing corporate needs.