DeepSeek's quick progress has stirred doubts about the lead America has in AI with models that it claims can match or even outperform Western rivals at a fraction of the cost, but the US executives said on Wednesday that building huge computer networks was necessary to serve growing corporate needs.

"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Meta Chief Executive Officer Mark Zuckerberg said on a post-earnings call.

Satya Nadella, Chief Executive Officer of Microsoft, said the spending was needed to overcome the capacity constraints that have hampered the technology giant's ability to capitalize on AI.

"As AI becomes more efficient and accessible, we will see exponentially more demand," he said on a call with analysts.

Microsoft has earmarked $80 billion for AI in its current fiscal year, while Meta has pledged as much as $65 billion towards the technology.

That is a far cry from the roughly $6 million DeepSeek said it has spent to develop its AI model. US tech executives and Wall Street analysts say that reflects the amount spent on computing power, rather than all development costs.

Still, some investors seem to be losing patience with the hefty spending and lack of big payoffs.

--Reuters--