Microsoft CEO Satya Nadella believes that DeepSeek will inevitably help the American AI industry rather than hurt it. Microsoft chief executive Satya Nadella isn’t pressed about Chinese AI startup DeepSeek’s recent success.

Chinese AI startup DeepSeek's model led to increased scrutiny on Microsoft's AI spending.

Days after Chinese upstart DeepSeek revealed a breakthrough in cheap AI computing that shook the U.S. technology industry, the chief executives of Microsoft and Meta defended massive spending that they said was key to staying competitive in the new field.

Microsoft has brought one of DeepSeek's models to its cloud, and says that 'distilled' versions of the model will come to Copilot+ PCs soon.

Sources at Open AI believe DeepSeek unlawfully distilled data from ChatGPT, Open AI and Microsoft begin investigation.

DeepSeek built top-performing AI models using less-advanced chips and for what it says is a fraction of the cost of rivals such as OpenAI.