{"id":3381,"date":"2025-02-05T04:25:31","date_gmt":"2025-02-05T04:25:31","guid":{"rendered":"https:\/\/fusionmindlabs.com\/blogs\/alphabet-praises-deepseek-but-boosts-ai-spending\/"},"modified":"2025-02-05T04:25:31","modified_gmt":"2025-02-05T04:25:31","slug":"alphabet-praises-deepseek-but-boosts-ai-spending","status":"publish","type":"post","link":"https:\/\/fusionmindlabs.com\/blogs\/alphabet-praises-deepseek-but-boosts-ai-spending\/","title":{"rendered":"Alphabet Praises DeepSeek, but Boosts AI Spending"},"content":{"rendered":"\n<\/p>\n<div>\n<p id=\"speakable-summary\" class=\"wp-block-paragraph\">Concerns over AI budgets seemed to be alleviated last week when DeepSeek&#8217;s stock crashed, based on speculation that its cheaper AI models would lower demand for AI chips and data centers.<\/p>\n<p class=\"wp-block-paragraph\">Alphabet CEO Sundar Pichai has acknowledged the Chinese AI company, praising its work as \u201ctremendous\u201d in Alphabet\u2019s latest earnings call (while noting that some of Gemini\u2019s models are just as efficient).<\/p>\n<p class=\"wp-block-paragraph\">However, just like Meta, Alphabet is not backing down in the AI spending wars. In its latest earnings report, Alphabet announced it would boost capital expenditures to $75 billion this year \u2014 a 42% increase \u2014 to accelerate its AI progress.<\/p>\n<p class=\"wp-block-paragraph\">Alphabet is betting that cheaper AI will boost demand for its services, rather than making them free and threatening its business models. The company noted it stands to benefit from this rise in usage \u2014 known as inference \u2014 thanks to its billions of existing users.<\/p>\n<p class=\"wp-block-paragraph\">\u201cPart of the reason we are so excited about the AI opportunity is we know we can drive extraordinary use cases because the cost of actually using it is going to keep coming down, which will make more use cases feasible,\u201d Pichai said during the earnings call. \u201cAnd that\u2019s the opportunity space. It\u2019s as big as it comes, and that\u2019s why you\u2019re seeing us invest to meet that moment.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Meta CEO Mark Zuckerberg made similar comments in Meta\u2019s earnings call last week, pledging to spend \u201chundreds of billions\u201d on AI in the long term despite the DeepSeek buzz.<\/p>\n<p class=\"wp-block-paragraph\">Whether this all pans out is unclear, but for now, tech giants can afford the AI bills, and when (or if) they\u2019ll slow down is anyone\u2019s guess.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/techcrunch.com\/2025\/02\/04\/alphabet-praises-deepseek-but-its-massively-ramping-up-its-ai-spending\/\" rel=\"nofollow noopener\" target=\"_blank\">Source Link<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Concerns over AI budgets seemed to be alleviated last week when DeepSeek&#8217;s stock crashed, based on speculation that its cheaper AI models would lower demand for AI chips and data&#8230;<\/p>\n","protected":false},"author":0,"featured_media":3382,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[815,62,173,103],"class_list":["post-3381","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-alphabet","tag-deepseek","tag-earnings","tag-google"],"jetpack_featured_media_url":"https:\/\/fusionmindlabs.com\/blogs\/wp-content\/uploads\/sites\/9\/2025\/02\/GettyImages-2173545285.jpg","_links":{"self":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts\/3381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/comments?post=3381"}],"version-history":[{"count":0,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/posts\/3381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/media\/3382"}],"wp:attachment":[{"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/media?parent=3381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/categories?post=3381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fusionmindlabs.com\/blogs\/wp-json\/wp\/v2\/tags?post=3381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}