Cut to Microsoft and Meta 's earnings calls Wednesday night and things were hunky dory. The CEOs of both companies, while acknowledging the efficiency improvements DeepSeek introduced to its AI models,

Chinese startup DeepSeek claims to offer competitive AI models at lower costs, raising doubts about U.S. tech giants' investments in AI. Microsoft and Meta defend their significant spending, highlighting its importance for long-term strategic advantage amidst increasing demand for AI solutions.

Microsoft (NASDAQ:MSFT) demonstrated the ability to monetize artificial intelligence outside of infrastructure in its second quarter fiscal 2025 earnings results. Still, shares were down 5% during early market action on Thursday.

The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its