The CEOs of both U.S. tech behemoths spoke about the Chinese startup’s innovations as they disclosed their financial results.

Microsoft has earmarked $80 billion for AI in its current fiscal year, while Meta has pledged as much as $65 billion

The tech giants are keeping capital spending plans in line as DeepSeek raises questions about future computing needs.

Leaders at Microsoft and Meta told investors that China’s DeepSeek doesn’t harm their businesses and that they will still spend billions on AI data centers.

Liang Wenfeng's firm, DeepSeek, emerged from the setbacks of his previous hedge fund, leveraging limited resources and local talent to disrupt the global AI supply chain. Despite constraints, DeepSeek's rapid rise has raised questions about AI innovation costs and China’s competitive momentum.

World shares are mostly lower after Wall Street edged back from its record highs on Monday. US stock futures sank as investors weighed a significant challenge from a Chinese firm, DeepSeek, to US dominance in artificial intelligence (AI).

Microsoft Corporation (MSFT) launched the highly popular DeepSeek R1, a powerful AI model, on its Azure cloud platform GitHub for developers.