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.

The tech giants on Wednesday talked up their AI strategies and said they are sticking with ambitious investments in the technology despite the investor panic this week over the ri

Reporting quarterly earnings Wednesday afternoon, it will be tough for Microsoft to avoid the issue of the AI breakthroughs from China's DeepSeek that are shaking up the tech world and the stock market this week.

Key Takeaways Meta CEO Mark Zuckerberg said Wednesday’s that the rapid rise of competitors from China has only strengthened the tech giant’s commitment to its AI ambitions. The CEO said it’s too early to know how growing competition from China could impact its future investments.