The Strategist

Zuckerberg rejects plans to cut AI spending amid DeepSeek's success



01/31/2025 - 01:58



Mark Zuckerberg, the CEO of Meta, stated that the company has no plans to cut its investments in artificial intelligence, even if the Chinese startup DeepSeek has successfully developed a robust model with significantly reduced costs and computing power, according to CNBC.



Anurag R Dubey
Anurag R Dubey
Zuckerberg states that it’s premature to make any conclusions regarding the impact of DeepSeek’s success on the development of artificial intelligence infrastructure and investment expenses.

In 2025, Meta intends to allocate $60-65 billion for AI development, with overall expenses ranging from $114-119 billion. Nonetheless, investors are confident that Meta can develop robust AI models at a lower cost, reports CNBC.

Zuckerberg added that Meta is evaluating DeepSeek's accomplishments and aims to incorporate some of them into its initiatives. He thinks that in the future, businesses will manage with reduced computing power for model training, but they will still need substantial server hardware to ensure elevated AI performance and service quality.

This could be expensive for Meta as the company caters to a vast customer base. He mentioned that Meta's audience hit 3.35 billion daily active users in Q4 of 2024.

source: cnbc.com

 




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