(Reuters) – Days after Chinese newcomers DeepSeek revealed an advance in artificial intelligence computing that shook the United States technology sector, Microsoft and Meta presidents defended massive investments from their companies that, according to them, were fundamental to stay competitive.
The rapid progress of aroused doubts about the so -called US leadership in AI with models that, according to Chinese company executives, can match or even overcome western rivals by a cost fraction.
“Investing ‘very heavily’ in infrastructure will be a strategic advantage over time,” Mark Zuckerberg’s chief executive told analysts after the company’s quarterly outcome. Until recently, Zuckerberg also advocated heavy investments from his company in what he called “metaverse.”
Satya Nadella, president of Microsoft, said investments are needed to overcome the ability restrictions that have damaged the AI capitalizing company.
“As Ia becomes more efficient and affordable, we will see an exponentially greater demand,” the executive told analysts after the publication of quarterly results.
Microsoft has reserved $ 80 billion for AI in its current fiscal year, while the goal promised up to 65 billion for technology.
This is far from about $ 6 million that DeepSeek said it was spent to develop its AI model. US technology executives and Wall Street analysts say this reflects the amount spent on computing capacity rather than all development costs.
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Still, some investors seem to be losing patience with high spending and the lack of great returns from US technology giants.
“We really want to start seeing a clear script on what the monetization model of all invested capital will be,” said Brian Mulberry, portfolio manager of Zacks Investment Management, which holds Microsoft actions.
The goal, in turn, sent contradictory signs about how its bets on AI tools were worth it, with a fourth quarter strong, but a weak revenue forecast for the current period.
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“With these huge expenses, they need to open the tap in terms of revenue generated, but I think this week was a warning to the US,” said Daniel Newman, an analyst at Futurum Group. “For AI, at the moment, there is a lot of capital spending, but there is not enough consumption.”
However, there are some signs that executives are moving to change this.
Microsoft’s chief financial officer, Amy Hood, said company investments in the current quarter and the next would remain around the level of 22.6 billion dollars observed in the second quarter.
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“In the 2026 fiscal year, we hope to continue investing in strong demand signs. However, the growth rate will be lower than in the 2025 fiscal year (which ends in June), ”she said.
