Alphabet praises DeepSeek, but it’s massively ramping up its AI spending
Alphabet boosts AI spending to $75B despite DeepSeek's cheaper models.

Alphabet is significantly increasing its AI-related expenditures, with plans to raise capital expenditures by 42% to $75 billion this year. This comes amid the rising influence of Chinese AI firm DeepSeek, which recently impacted Nvidia’s stock due to speculation over its cheaper AI models reducing the need for AI chips and data centers.
Alphabet's CEO Sundar Pichai noted DeepSeek’s remarkable work during a recent earnings call, but he emphasized that Alphabet remains committed to AI advancements. He believes that lower costs will drive greater usage, aiding Alphabet’s business by capitalizing on the increased demand for AI-powered services.
Echoing this sentiment, Meta's CEO Mark Zuckerberg also expressed substantial commitment to AI investments. He mentioned in a Meta earnings call that the company intends to spend “hundreds of billions” in the long run, despite the market chatter surrounding DeepSeek. The ongoing focus across tech giants underscores the growing importance of AI, despite uncertainties about future expenditure slowdowns.