Microsoft Corp. Chief Executive Officer Satya Nadella had some kind words for DeepSeek, the Chinese artificial intelligence startup that roiled his company’s shares earlier this week.

The Chinese startup DeepSeek shook up the world of AI last week after showing its supercheap R1 model could compete directly with OpenAI’s o1. While it wiped nearly $600 billion off Nvidia’s market value,

Cut to Microsoft and Meta 's earnings calls Wednesday night and things were hunky dory. The CEOs of both companies, while acknowledging the efficiency improvements DeepSeek introduced to its AI models,

Satya Nadella, CEO of Microsoft, said the spending was needed to overcome the capacity constraints that hampered the tech giant's ability to capitalize on AI.

Chinese AI startup DeepSeek's model led to increased scrutiny on Microsoft's AI spending.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online