Asked about China’s Deep Shek AI, Google CEO Sundar Pichai said that the team behind the Chinese AI model is “risqué” and while doing “very good work”, Google’s model is “We argued that it was part of the most efficient model.
Google’s parent company, Alphabet Inc, suffered a whopping $211 billion erosion at its market valuation on Wednesday. October 2023. Google’s fall came just weeks after chip-making giant Nvidia suffered a similar fate following the release of China’s revolutionary AI model, the Deepseek R1, turning the AI sector into a head.
Google’s stock fell despite the company’s revenue beating Wall Street expectations, but it’s under-revenue. The Tech Titan recession comes amid an announcement that it will increase spending on AI initiatives despite slowing revenue growth.
Market experts believe the stock’s sale reflects growing concerns among investors over escalating AI spending at major US technology companies. This is concern that has skyrocketed after Chinese startups unveiled the Deepseek R1, a powerful AI model of under $6 million, and will utilize Nvidia’s top hardware.
The revelation by Deepseek has raised questions about the efficiency and need for large-scale AI investments that have become US companies like Google, Microsoft and Openai, they said.
Google announces $75 billion in AI investment
Previously, the company was on a revenue call. Google CEO Sundar Pichai has announced plans for a staggering $75 billion capital expenditure for 2025.
Reports show that Google’s investment in Gargantuan is primarily directed at strengthening AI capabilities and infrastructure. “We are confident in the opportunities ahead and look forward to investing approximately $75 billion in capital expenditure in 2025 to accelerate progress,” Sundar Pichai said in a revenue release. I’ve said that.
Sundar Pichai from Deepseek
Asked about China’s Deepseek AI, Sundar Pichai said that the team behind the Chinese AI model is “risqué” and while doing “very good work”, Google’s model is “deepseek’s” It claimed to be part of the most efficient model, such as comparing it to the V3. R1.”
Google is making huge investments in developing AI infrastructure along with other major US tech companies such as Microsoft, Facebook Parent Meta and Amazon.
