DeepSeek is causing havoc throughout the AI industry. U.S.-based tech companies that have heavily invested in AI saw their stocks take a tumble this week after the China-based startup released a new AI model on par with OpenAI's latest model, yet much cheaper to train — plus, DeepSeek made it free and open source.

Microsoft Corp. and OpenAI are investigating whether data from OpenAI’s technology was obtained without authorization by a group linked to Chinese AI startup DeepSeek, sources said. Microsoft researchers observed individuals possibly tied to DeepSeek extracting large amounts of data via OpenAI’s API last fall,

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.

Meta and Microsoft outperformed in Q4 and Q2 earnings but saw diverging market responses. See why META and MSFT stocks are poised for growth with agentic AI.

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