Astor Perkins’ Post

DeepSeek's cost-effective AI computing advancements have prompted Microsoft and Meta's CEOs to stress the importance of their significant investments in AI to stay competitive. DeepSeek claims its models can rival Western counterparts at a fraction of the cost, raising concerns about the U.S.'s AI leadership. Meta's CEO, Mark Zuckerberg, emphasized that substantial capital expenditure is vital for a strategic edge, while Microsoft's Satya Nadella pointed out the need for investments to alleviate supply constraints limiting AI potential. Microsoft has committed $80 billion and Meta $65 billion to AI in their fiscal years, far exceeding DeepSeek's reported expenditure of around $6 million. Investor patience is waning, illustrated by the decline in Microsoft shares following disappointing growth forecasts for Azure cloud services. Analysts are calling for clearer monetization strategies from these substantial investments. Meta's mixed messages on its AI initiatives, showing a strong fourth quarter yet a weak sales outlook, have further fueled concerns. Experts argue that the disparity between capital expenditure and revenue generation in the AI sector serves as a wake-up call for U.S. companies. Despite this, Microsoft CFO Amy Hood indicated that while investments would persist in fiscal 2026, growth rates are expected to slow compared to fiscal 2025. #AI #SouthKorea https://lnkd.in/gbzxtVie

DeepSeek's breakthrough in cheap AI computing has sharpened scrutiny of the billions U.S. tech giants are spending on datacenters. On Wednesday, CEOs of two the companies, Microsoft and Meta, said the massive investments were crucial to staying competitive in the new field. "Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," according to Meta's Mark Zuckerberg. Microsoft top boss Satya Nadella said that "as AI becomes more efficient and accessible, we will see exponentially more demand." The software giant has earmarked $80 billion for AI in its current financial year, while Meta has pledged as much as $65 billion towards the technology for 2025. That is a far cry from the roughly $6 million DeepSeek said it has spent to develop its AI model. U.S. tech executives and Wall Street analysts say that reflects the amount spent on computing power, rather than all development costs. Still, some investors seem to be losing patience with the lack of big payoffs from the spending. Shares of Microsoft — widely seen as a front runner in the AI race because of its tie to industry leader OpenAI - were down 5% after it forecast lackluster growth for its Azure cloud business, the segment that benefits the most from AI. With Deborah Sophia. Read more at Reuters. https://lnkd.in/gRKeDM-m

223: The number of times AI was mentioned in Google, Microsoft, and Meta earnings calls Corporate texts, like earnings call transcripts, provide valuable insights into how companies respond to economic conditions. Analysis of these texts can be performed to gain real-time insights at the firm level, such as measuring labor market tightness, identifying emerging trends, and assessing investments. This post explores a similar method for examining AI-related discussions at the firm level in earnings calls. "AI" was mentioned 75 times in Alphabet's (Google's) earnings call, 61 times in Microsoft's earnings call, and 87 times in Meta's earnings call. This brings the total number of mentions of this buzzword to over 220. These three major tech companies are heavily investing in AI and are making that fact loud and clear. https://lnkd.in/g8tXmC2s

Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns tech world Microsoft has earmarked $80 billion for AI in its current fiscal year, while Meta has pledged as much as $65 billion towards the technology. https://lnkd.in/gyYEJp2Y

Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns tech world - Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that the - https://lnkd.in/eSKWXHYj

Microsoft, Meta CEOs defend hefty AI spending after DeepSeek stuns tech world Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field. DeepSeek's quick progress has stirred doubts about the lead America has in AI with models that it claims can match or even outperform Western rivals at a fraction of the cost, but the U.S. executives said on Wednesday that building huge computer networks was necessary to serve growing corporate needs. https://lnkd.in/dUEAV2VX

𝐀𝐈 𝐟𝐨𝐫𝐞𝐜𝐚𝐬𝐭 : 𝐝𝐞𝐞𝐩𝐞𝐫 𝐬𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐚𝐧𝐝 𝐚 𝐥𝐨𝐧𝐠 𝐫𝐨𝐚𝐝 𝐭𝐨 𝐩𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲. Investors appear to be losing patience with Big Tech's prodigious artificial intelligence investments. To stay in the race companies like Meta, Microsoft and Google increase investments in AI and see also operational costs rising due to the high energy consumption of AI models. Industry-wide, shareholders are now focused on looking for revenue, including pricing models and whether customers can find use cases that justify the cost of generative AI. 𝘛𝘩𝘪𝘴 𝘺𝘦𝘢𝘳 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘣𝘦 𝘢𝘣𝘰𝘶𝘵 𝘮𝘰𝘷𝘪𝘯𝘨 𝘧𝘰𝘳𝘸𝘢𝘳𝘥 𝘸𝘪𝘵𝘩 𝘤𝘰𝘯𝘤𝘳𝘦𝘵𝘦 𝘴𝘵𝘦𝘱𝘴." https://lnkd.in/e7GAxw9N

Buzz around the AI contest is on! 🔥 Google and Microsoft shares soar with AI strategies. Microsoft edges out with Azure, while Alphabet's Google speeds ahead, targeting $2 trillion! 🚀💼 Though Microsoft outspends, it's a close race with Alphabet and Meta. AI's rewards are vast. Who'll reign the AI age? Time will reveal. 🤖💡 #TechTrends #MarketWatch *Some sections of this post were crafted using AI*