DeepSeek's AI shakeup: Why Big Tech won’t cut spending

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Following a market shake-up caused by Chinese startup DeepSeek's artificial intelligence (AI) model, all eyes are on Big Tech's next moves, especially as Microsoft (MSFT), Meta (META), Tesla (TSLA), and IBM (IBM) are set to release earnings Wednesday afternoon.

Yahoo Finance Technology Editor Dan Howley sits down in-studio with Catalysts host Seana Smith to explain that, while DeepSeek's AI platforms may increase efficiency, Big Tech companies like Meta and Microsoft are unlikely to scale back on their investments. This is partly because these companies need massive computing power to support growing AI demand.

Additionally, discussions around regulatory impacts and profitability from these tech giants' AI investments are explored.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Josh Lynch