There's a lot of noise in the AI market at the start of 2025. But Microsoft CEO Nadella has seen it all before.
OpenAI CEO Sam Altman posted a picture of himself with Microsoft CEO Satya Nadella on Tuesday and suggested the two companies are getting along just fine.
The Microsoft CEO will have to perform a delicate balancing act over the next four years to keep his company from becoming a target.
Both Meta and Microsoft committed to huge investments in artificial intelligence, despite new Chinese software outperforming American rivals at a lower cost.
The Microsoft CEO cited Jevons paradox, which stipulates increased efficiency in production drives increased demand.
Chinese AI chatbot DeepSeek has displaced OpenAI’s ChatGPT as the most downloaded app on the Apple App store and the market is panicking. Stocks for major AI connected companies like NVIDIA fell on Monday morning following the news.
The software giant posted earnings just days after the tech sector was sent reeling by the debut of the Chinese AI chatbot DeepSeek. The system's developers said DeepSeek was built at a fraction of the cost of industry-leading models like OpenAI's ChatGPT because it uses fewer advanced chips.
DeepSeek delivers high-performing, cost-effective models using weaker GPUs, questioning the trillion-dollar spend on US AI firms like OpenAI.
Chinese AI startup DeepSeek burst on the scene this week with its latest AI model, which the startup claims performs as well as leading AI from OpenAI, Meta, and Anthropic — but at a far lower cost to develop.
As with Jevons Paradox, efficiency gains should send AI use soaring as costs drop. As Microsoft’s Satya Nadella observed, what the steam engine did to coal demand is now likely to happen with AI.