DeepSeek has spread news about its cheaper artificial intelligence models, causing Nvidia's stock to drop. This has raised questions about the potential decrease in AI costs.
Alphabet's CEO, Sundar Pichai, called DeepSeek's work "tremendous," but also pointed out that Alphabet's own AI models, Gemini, are equally as good. Nevertheless, Alphabet continues to invest heavily in AI. The company announced it will spend $75 billion on AI this year, which is a 42% increase compared to last year.
Pichai mentioned that as the cost of AI decreases, more people will be able to use the technology. "This is a huge opportunity, and that’s why we are investing," he added. Meta's CEO, Mark Zuckerberg, shared similar views, stating that the company will invest billions of dollars in AI. However, it is still unclear when the tech giants will slow down these expenses.
