"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.

Chinese AI startup DeepSeek's model led to increased scrutiny on Microsoft's AI spending.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online

DeepSeek is causing havoc throughout the AI industry. U.S.-based tech companies that have heavily invested in AI saw their stocks take a tumble this week after the China-based startup released a new AI model on par with OpenAI's latest model, yet much cheaper to train — plus, DeepSeek made it free and open source.

Sam Altman’s OpenAI said Chinese competitor DeepSeek could be committing intellectual property theft. DeepSeek, an emerging Chinese artificial intelligence company, sent shockwaves through the technology world when its AI model surged to the top of the app store in the United States this week.

As Chinese AI company DeepSeek gains traction in the tech world amid ongoing US-China trade tensions, OpenAI suspects that DeepSeek may have utilized ChatGPT data to develop its own cost-effective AI models.