(Bloomberg) – The chief executive officer of Microsoft Corp., Satya Nadella, had friendly words for Deepseek, the Chinese artificial intelligence startup that has shot the actions of his company earlier this week.
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The upstart has amazed the American technological industry with an open source model called R1 that it claims its competitors or surpasses the capacities of Western technology but to a fraction of the cost.
“Deepseek had real innovations,” said Nadella during an investor call after Microsoft published quarterly results on Wednesday. “Obviously, now that everything becomes commodity and that it will be widely used.”
Deepseek’s feat has encouraged investors to wonder if Nadella’s company must spend as much money in AI infrastructure. Has Microsoft and Partner OpenAI could not form its AI models and manage user requests – a process known as inference – at a lower cost?
Nadella said they had already done that exactly.
“We ourselves we have observed significant efficiency both in training and inference for years now,” he said. Microsoft has used its software to attract better performance and cost savings from each new generation of AI models and AI equipment, said Nadella.
He said Microsoft had done much of the work in partnership with Openai. It is not enough to publish the best new model, he added. You should make it profitable to use. “If it’s too expensive to serve, it’s not good, right?” He said.
Microsoft still plans to spend $ 80 billion in data centers this exercise to help them meet customer demand for AI products, although the company expects the growth in spending to be able to ‘Weaken during fiscal 2026, which begins on July 1.
Tuesday, Bloomberg News reported that Microsoft and Openai examine whether a group linked to Deepseek had obtained the production of OPENAI technology data without authorization.
This did not prevent Microsoft from offering the Deepseek model to customers. On Wednesday, the company said it added R1 to its Azure AI foundry, a repository of more than 1,800 models that companies can use to design and manage AI programs.
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