DeepSeek news causes AI stock prices to drop, but Microsoft and Meta post strong earnings.
From Nasdaq: 2025-01-30 17:12:00
DeepSeek news caused AI stock prices to plummet, highlighting their new R1 model that competes with industry leaders at a fraction of the cost. Microsoft and Meta Platforms maintained CapEx outlooks despite concerns, with Microsoft posting impressive earnings and Meta Platforms exceeding expectations. Both companies acknowledged DeepSeek’s impact on the industry.
In response to the DeepSeek news, Microsoft CEO Satya Nadella praised the innovations of the Chinese startup and highlighted the addition of DeepSeek R1 to Azure AI Foundry and GitHub. Microsoft’s forward-looking CapEx plans remain strong, reflecting investors’ high growth expectations. Meta Platforms also exceeded expectations and acknowledged the potential influence of DeepSeek on industry trends.
Despite initial shockwaves from the DeepSeek news, both Microsoft and Meta Platforms reassured investors with strong earnings and unwavering CapEx outlooks. The AI industry may see shifts in infrastructure and technology advancements, but for now, it’s important to wait for official statements from companies before drawing conclusions.
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Read more at Nasdaq: Microsoft & Meta Earnings: Are DeepSeek Assumptions Premature?