A few days after the success of Chinese Startup Deepsek, a few days after low -cost AI computing, shaken the US technology industry, Microsoft and Meta CEOs defended large -scale expenses, stating that it was important to remain competitive in the new area.
Quick progress with the models of Deepsac that claims that it can match or even perform western rivals better at a fraction of cost, which we have, but the top officials said that the top officials said that the top Officials said that the construction of a huge computer network was required to meet the growing corporate needs.
Meta CEO Mark Zuckerberg said on a post -earning call, “It is going to be a strategic benefit over time to invest very heavy in capital expenditure and infrastructure.”
Microsoft CEO Satya Nadella said that the lack of capacity in spending will be reduced which has hindered the technology giant company to capitalize on AI.
“AI becomes more efficient and accessible, we’ll look fast more demand,” he said on a call with analysts.
Microsoft has introduced $ 80 billion (about Rs 6,93,031 crore) for AI in its current financial year, while Meta has promised $ 65 billion (about Rs 5,63,085 crore).
It is far from approximately $ 6 million (about 5,63,085 crores), Deepsek said that it has spent to develop his AI model. US authorities and Wall Street analysts said that instead of all development costs, there is an amount spent on computing power.
Nevertheless, some investors are losing patience with heavy spending and lack of large payments.
Microsoft’s shares – widely seen as a precursor in the AI ​​race, as the leader of the industry was six percent below in early trade on Thursday – due to his relations with Openai, after growing in its agorous cloud business by the company Estimates of the third quarter will be remembered.
“We really want to begin to see a clear roadmap that the demonetisation model looks for all the capital that has been invested,” said the portfolio manager of Jacques Investment Management Bryn Mulberry, who shares in Microsoft.
Meanwhile, Meta sent mixed signals about how its stakes on AI-operated equipment were paying with a strong fourth quarter, but forecast a shortage sales for the first quarter. Its shares were more than four percent on Thursday.
“With these huge expenses, they need to turn on Spigot in terms of revenue generation, but this week was a wake-up call for the US.”
“For AI right now, there is too much capital expenditure, not enough consumption.”
There are some signs that aim to keep the checks on expenditure.
Microsoft CFO Amy Hood said the capital expenditure in the third and fourth quarters would be around $ 22.6 billion (about Rs 1,95,769 crore), the level seen in the second quarter.
“In FY 2026, we expect to continue investing against strong demand signals. However, the growth rate will be less than the financial year 2025 (which ends in June),” he said.
© Thomson Reuters 2025
