From CNBC: 2025-02-01 08:00:01

Tech CEOs, including Microsoft’s Satya Nadella and Apple’s Tim Cook, praised China’s DeepSeek AI model for cost-effectiveness and innovation. DeepSeek’s success led to a drop in Nvidia and Broadcom shares, wiping out $800 billion in market cap. The rollout coincided with major tech earnings reports and Trump’s focus on U.S. AI competitiveness.

Despite debate on DeepSeek’s actual costs, AI remains a key focus for tech companies. U.S. tech leaders are investing heavily in AI infrastructure to compete with China. Palantir CEO Alex Karp emphasized the need for an all-country effort to stay ahead in technology.

Microsoft’s Nadella sees DeepSeek as showcasing real innovations and lowering AI costs. LinkedIn co-founder Reid Hoffman downplayed concerns, saying it’s a time for competition, not panic. OpenAI CEO Sam Altman praised DeepSeek as a great model and emphasized the need for democratic AI to succeed.

The intense competition in AI is pushing companies to innovate and develop better models. Microsoft and OpenAI are working to make AI more accessible and beneficial to customers. Despite the challenges, tech leaders are focused on advancing AI technology to stay competitive in the global market.



Read more at CNBC:: DeepSeek shocked AI world this week. Here’s how tech CEOs responded