By Aditya Soni and Deborah Mary Sophia
(Reuters) -Days after Deepseek, the Chinese upstart, revealed a breakthrough in cheap AI computer which rocked the American technological industry, the heads of the management of Microsoft (MSFT) and Meta (Meta ) defended the massive expenses which, according to them, were essential to remain competitive in the news in the news in the news in the news in the news in the new in the new in the new in the new in the new in The new one in the news in the news in the news in the news in the news in the news in the news in the news in the news in the news in the news in the new in the new in the new in the new in the new. field.
The rapid progress of Deepseek has aroused doubts about lead that America has in AI with models which, according to him, can equal or even surpass Western competitors at a fraction of the cost, but the American leaders declared on Wednesday that the creation of huge IT networks was necessary to serve growing business companies.
“Investing” very strongly “in capital expenses and infrastructure will be a strategic advantage over time,” said Meta CEO (Meta), Mark Zuckerberg, during a post-benefit call.
Satya Nadella, CEO of Microsoft, said that expenses were necessary to overcome the capacity constraints that hampered the capacity of technology to capitalize on AI.
“While AI becomes more efficient and accessible, we will exponentially see more demand,” he said during an appeal with analysts.
Microsoft has reserved $ 80 billion for AI during its current financial year, while Meta has promised up to $ 65 billion for technology.
It was far from the depth of around $ 6 million that Deepseek said she had spent to develop her AI model. The leaders of American technology and Wall Street analysts claim that this reflects the amount spent on calculation power, rather than all development costs.
However, some investors seem to lose patience with heavy expenses and the lack of big gains.
Microsoft’s actions – widely considered as a front runner in AI race because of his link with the leader of the OpenAi industry – decreased by 5% in prolonged exchanges after the company declared that the Growth of its Azure Cloud activities during the current quarter would not reach estimates of estimates.
“We really want to start seeing a clear roadmap what this monetization model for all the capital that has been invested,” said Brian Mulberry, portfolio director at Zacks Investment Management, which contains Microsoft actions.
Meta, on the other hand, sent mixed signals on how her bets on the tools fueled by AI were paid with a solid fourth quarter, but a forecast of dull sales for the current period.
“With these enormous expenses, they must activate the tap in terms of revenue generated, but I think this week was an alarm clock for the United States,” said analyst of the Group Futurum Daniel Newman.
“For AI at the moment, there are too many capital expenses, not enough consumption.”
