The alphabet praised Deepseek but massively increases its AI costs

AI budgets seemed at risk last week when Deepseek crashes on NVIDIA stocks based on speculation that his More expensive AI models It would reduce the search for AI chips and data centers.

Alphabet Sundar Pichai CEO has certainly noticed the Chinese AI company, praising its work as “huge” in Alphabet Last call call (while Adding that some of the twin models are just as effective).

But Just like a methaAlphabet does not throw the towel in AI costs of Big Tech. In his last profit report, Alphabet declared This will increase capital costs to $ 75 billion this year – a huge 42% increase – to accelerate its progress on AI.

Alphabet relies that the cheaper AI will enhance the demand for its services in large numbers instead of doing it for free and threatening its business models. The company noted that it took advantage of this rise in use – known as a conclusion – thanks to its billions of existing users.

“Part of the reason we are so excited about the possibility of AI is that we know that we can achieve exceptional cases of use, as the cost of actually using it will continue to reduce, which will use more cases of use,” Pichai said on Profit time Call. “And this is the space of opportunities. He is as big as he comes, so you see us invest to meet at that moment. “

Meta CEO Mark Zuckerberg made similar comments In Meta’s revenue, call last week, promising to spend “hundreds of billions” for AI in the long run, despite all Deepseek Buzz.

Whether this is not clear, but for now the technological giants can afford AI bills and when (or if) they will slow down is someone’s assumption.