"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.

Key tech stocks were a mixed bag in early trading Thursday after executives at Meta and Microsoft said they plan to keep pouring billions of dollars into AI – despite lingering anxiety over the launch of China-based DeepSeek’s AI model.

Microsoft reported lower-than-expected revenue growth for its AI and cloud divisions as scrutiny grows over tech's AI investments.

Microsoft on Wednesday posted disappointing Azure cloud business growth and large artificial intelligence expenses, hitting its shares as a recent surge in low-cost Chinese AI technology threatens to undermine the case for such big spending.

Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year,

Microsoft is stuck in an infrastructure investment arms race that could lead customers to ask difficult questions about costs, said analysts.

Microsoft reported slower-than-expected growth in its crucial Azure cloud business on Wednesday despite beating estimates for overall quarterly revenue and increasing use of its cloud services for artificial intelligence.

Microsoft Corporation (MSFT) launched the highly popular DeepSeek R1, a powerful AI model, on its Azure cloud platform GitHub for developers.

Microsoft MSFT.O has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.