Tech giants such as Meta and Microsoft have reaffirmed their commitment to investing heavily in artificial intelligence (AI) despite concerns raised by the emergence of a cheaper AI model from Chinese company DeepSeek.
The two companies, along with Apple and others, have reported earnings calls where they discussed their plans for expanding AI infrastructure. Meta plans to spend $60 billion to $65 billion on AI initiatives this year, while Microsoft has allocated $80 billion for its AI data centers in the fiscal year.
Despite these significant investments, tech experts are optimistic about the benefits of cheaper AI models, which can broaden access to the technology and increase demand. According to Dan Ives, managing director at Wedbush Securities, the “AI arms race” is far from over, and DeepSeek’s R1 model will not change the spending goals of Big Tech companies.
“I think this news has only strengthened our conviction that this is the right thing for us to be focused on,” said Meta CEO Mark Zuckerberg. The company aims to set an “American standard” for open-source AI models globally as they become more accessible.
Apple CEO Tim Cook emphasized a prudent approach to spending on AI, while Tesla CEO Elon Musk focused on real-world applications of AI in his earnings call. Despite the rise of cheaper AI models, tech giants remain committed to investing in AI infrastructure, indicating that they will continue to drive innovation and growth in the industry.
Source: https://www.businessinsider.com/meta-microsoft-others-stick-to-ai-spending-infrastructure-deepseek-2025-2