After the Chinese tech company Deepseek unveiled its low-cost AI computing technology, concerns have been raised in the U.S. tech industry. The company claims that its technology can deliver the same or better results at a lower cost compared to Western competitors. In this context, the CEOs of Microsoft and Meta have argued in favor of massive investments in artificial intelligence (AI). They emphasized that such investments are crucial to staying competitive in the AI sector. Essentially, they presented this argument to reassure investors.
Microsoft plans to invest $80 billion in the AI sector in its current fiscal year, while Meta plans to invest $65 billion. Microsoft CEO Satya Nadella stated that the growing demand resulting from the increased capabilities of AI technology requires the construction of large-scale computer networks to meet it. He also said that as AI becomes more efficient and accessible, its demand will continue to rise.
Meta’s CEO Mark Zuckerberg said that investing large amounts of money in the AI sector and spending on its infrastructure will serve as a strategic advantage in the long term.
On the other hand, Deepseek claims that it spent only $6 million to develop its AI model. However, U.S. tech companies argue that this amount was primarily spent on computing power, not the total cost of developing the model.
However, some investors have expressed concerns after not seeing significant profits in return for such large expenses. Last week, Microsoft’s shares dropped by 5%, and the company announced that the growth rate of its Azure cloud business will be lower than expected.
Brian Malberry, portfolio manager at Jacks Investment Management and an investor in Microsoft, said, ‘I want to see a clear roadmap for how these investments will generate income.’
Meanwhile, although Meta showed impressive results for its fourth quarter, the company’s sales forecast is quite disappointing. Analyst Daniel Newman from Futurium Group stated, ‘There is excessive capital spending in the AI sector, but the necessary demand is still not visible.’
Liberty News’ tech correspondent reports that some signs suggest that tech companies are restructuring their plans to ensure revenue flow in this sector. Microsoft’s CFO Amy Hood stated that their capital expenditure will remain at $22.6 billion over the next two quarters. However, this growth rate may decrease in the 2026 fiscal year.
LND/SAKIB
