Days after Chinese Startup Deepsek’s Breakthrough Low-Cost Ai Computing Shok The Us Technology Industry, CEOS of Microsoft and Meta Defended Massive Spend Massive Spending Eld.
Deepseek’s Quick Advances With Models that It Claimed Can Match or even Outperform Western Rivals at a Fraction of the Cost Stirred Doubts About The Lead Us Has, but the Top Execuis Ecessary to Serve Growing Corporate needs.
“Investing very heavily in capital expert and infrastructure is going to be a strategic advantage over time,” Meta Ceo Mark zuckerberg Said on a post-earnings call.
Microsoft Ceo Satya nadella Said the spending would ease capacity constraints that have having the technology giant’s ability to capitalise on Ai.
“As ai become more efficient and accessible, we will see exponentially more demand,” He said on a call with analysts.
Microsoft has earmarked $ 80 billion (roughly Rs.
That is a far cry from the roughly $ 6 million (roughly Rs. 5,63,085 Crore) Deepsek said it has spent to Develop Its Ai Model. Us Executives and Wall Street Analysts Said That is the Amount Spent on Computing Power, Rather Than All Development costs.
Still, some investors see to be losing patience with the heart spending and Lack of big payoffs.
Shares of Microsoft – Widely Seen as a Frontrunner in the Ai Race against of its ties to Industry Leader Openai – Were down Six Percent in Early Trading on Thursday after the company said growth in its azure cloud business will miss third -Quarter estimates.
“We really want to start to see a clear roadmap to what that monetization model looks like for all of the capital that’s been invested,” Said brian mulberry, portfolio manager at zacks ICROSOFT.
Meta, mean, synt mixed Signals about how its bets on ai-powered tools ware paying off with a strong fourth quarter, but a lacluster sales forcast for the fresh. Its shares were up more than four percent on Thursday.
“With these huge expenses, they need to turn the spigot on in terms of revonsue generated, but this week was a wake-up call for the us.
“For ai right now, there’s too much capital experture, not enough consumption.”
There are some signs that Executives are aiming to keep a check on Expected.
Microsoft Cfo Amy Hood said Capital Spending in the Third and Fourth Quarters Delhi Around the $ 22.6 billion (roughly Rs.
“In Fiscal 2026, We Expect to Continue to Invest Against Strong Demand Signals. However, The growth rate will be lower thank Fiscal 2025 (Why Ends in June),” She Said.
© Thomson Reuters 2025
(This story has not been edited by ndtv staff and is auto-generated from a syndicated feed.)
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