Microsoft's AI Gamble: DeepSeek Sets a New Bar

Microsoft CEO Satya Nadella rapidly deployed DeepSeek's R1 model onto Azure, marking a strategic shift in Microsoft's AI approach. DeepSeek's efficient AI models and lean team achieved App Store success, setting a new benchmark for Microsoft's own AI development. Microsoft is significantly investing in AI, including $80 billion in datacenters and research into its own Muse model for Copilot, aiming to boost its competitive edge. However, challenges remain, including potential datacenter overcapacity and achieving its 2030 carbon-neutral goal.