Microsoft, Meta Talk Up Their Big Artificial Intelligence Ambitions and Spending Plans

Meta Platforms unveiled plans to make artificial intelligence more personalized this year, and Microsoft predicted "exponentially more demand" for AI products.

- Bradley Olson & Tom Dotan

The tech giants on Wednesday talked up their AI strategies and said they are sticking with ambitious investments in the technology despite the investor panic this week over the rise of DeepSeek. That Chinese company's claim that it built an advanced AI model with far less money and fewer advanced chips than big-name U.S. competitors has caused many to question the wisdom of pouring oceans of cash into developing cutting-edge AI systems.

Microsoft Chief Executive Satya Nadella and Meta CEO Mark Zuckerberg said in earnings calls that DeepSeek had made real innovations.

But the two portrayed the Chinese company's work as part of a technological evolution that will make AI cheaper and more widely used rather than the extensive disruption that some observers have perceived.

"There's a number of novel things that they did that I think we're still digesting," Zuckerberg said on a call with analysts after Meta reported record quarterly sales and strong profit growth. "I continue to think that investing very heavily in [capital expenditures and infrastructure] is going to be a strategic advantage over time. It's possible that we'll learn otherwise at some point. But I just think it's way too early to call."

Microsoft's 'fungible fleet'

Microsoft on Wednesday reported a 12% increase in total sales for its latest quarter but reported growth in its much-watched cloud-computing division that disappointed investors.