Microsoft CEO Satya Nadella touts DeepSeek's open-source AI as "super impressive": "We should take the developments out of China very, very seriously"

Satya Nadella contemplating during the annual Microsoft shareholders meeting.

The hype building around Chinese AI startup DeepSeek has raised concern among key tech industry stakeholders, and for good reason. On Monday, DeepSeek became the most downloaded free AI app in the US, dethroning OpenAI's ChatGPT. Similarly, Microsoft, Meta, and NVIDIA's stock prices plummeted. The chipmaker lost approximately $500 billion in market valuation, making it the third-most valuable company in the world, behind Microsoft and Apple.

Microsoft CEO Satya Nadella recently weighed in on DeepSeek's ultra-cost-effective AI phenomenon while comparing it to the Jevons paradox economic concept. “Jevons paradox strikes again!” Nadella indicated on X. “As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can’t get enough of.”