DeepSeek Unlikely to Dent Spending for Tech Giants Like Microsoft The widely publicized success of Chinese startup DeepSeek’s low-cost AI model is unlikely to change the capital-spending plans of hyperscale cloud providers Microsoft, Amazon Web Services and Oracle over the next 12 months. Even if there’s a reduction in training demand in the medium term, we anticipate a much larger need for inferencing workloads, given that most enterprises have barely embraced AI. Microsoft’s close relationship with OpenAI makes it better positioned than most of its software rivals to capitalize on increased generative-AI spending. A Bloomberg Intelligence analysis indicates over $20 billion of AI sales in 2025. Bloomberg Intelligence senior technology analyst Anurag Rana provides further context and also explains how Apple fits into the broader AI equation. Anurag speaks with Tom Keene and Paul Sweeney on Bloomberg Radio. (Source: Bloomberg)Read More
