Giants in the tech industry are reporting earnings for the first time in 2025 to much anticipation. Investors have been eager to hear how hyperscalers will respond to DeepSeek, which shook markets. Many big tech and semiconductor names sold off extensively after a report that DeepSeek developed its R1 model for under $6 million.
This cast doubt on the need to spend billions to develop AI infrastructure, leading to speculation that hyperscalers could greatly reduce certain investments in AI going forward. However, according to Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META), the AI investment train will continue chugging, at least for now.
