That hope turned to concern in January when China’s DeepSeek large language model was released. This played into the bearish argument that hyperscalers (i.e., companies that require large-scale data centers to accommodate a wide range of cloud computing and data management services) would cut back on their infrastructure spending.
However, the first quarter earnings season disproved that assumption. If anything, companies such as Amazon.com Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT) are increasing their infrastructure spending.
