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Key Takeaways

• Meta CEO Mark Zuckerberg said Wednesday’s that the rapid rise of competitors from China has only strengthened the tech giant’s commitment to its AI ambitions.

• The CEO said it’s too early to know how growing competition from China could impact its future investments. Meta reiterated its forecast of $60 billion to $65 billion in capital expenditures this year.

• The rapid rise in popularity of lower-cost AI models from Chinese rivals rattled markets earlier this week, amid concerns tech companies in the U.S. could be overspending on the technology.

The rapid rise of new competitors from China has only bolstered Meta's commitment to its AI ambitions as it spends billions of dollars on the emerging technology, CEO Mark Zuckerberg said Wednesday.

The recent surge in popularity of an app from Chinese AI startup DeepSeek, which claimed to have developed models on par with those of American rivals at a fraction of the cost, rattled markets this week as it raised questions about whether Meta (META) and other Big Tech firms could be overspending.

Zuckerberg during Wednesday’s earnings call said that DeepSeek’s rise “has only strengthened our conviction that this is the right thing for us to be focused on.”

The CEO said it’s too early to know for sure how competition from China could impact Meta’s future investments. Meta, the Facebook and Instagram parent, on Wednesday reiterated its forecast of $60 billion to $65 billion in capital expenditures this year as it bets big on AI. (It also topped analysts’ estimates with its fourth-quarter results.)

Zuckerberg Says Meta AI Could Be 'Transformative'

Zuckerberg said he believes Meta AI, the company’s AI assistant, “is going to be one of the most transformative products that we've made.” The assistant, he said, "is already used by more people than any other" and could reach 1 billion people this year.

Meta’s AI capabilities could also benefit from DeepSeek’s innovations, Zuckerberg suggested, indicating Meta would look to implement some of DeepSeek’s advances into its own systems.

Ahead of Meta’s earnings report, analysts at Morgan Stanley had suggested that Meta could ultimately benefit from adopting some of DeepSeek’s innovations. Analysts at Bank of America suggested competition from China could also push American firms to act with greater urgency on AI developments, rather than scaling back spending.

The CEO also said he expect 2025 could be "a big year for redefining our relationship with governments," and that he's "optimistic about the progress and innovation that this can unlock.”