Leaders at Microsoft and Meta told investors that China’s DeepSeek doesn’t harm their businesses and that they will still spend billions on AI data centers.

The release of Chinese AI model DeepSeek led to a stock market rout for U.S. tech firms on Monday. However, Wall Street believes the industry will bounce back.

Liang Wenfeng's firm, DeepSeek, emerged from the setbacks of his previous hedge fund, leveraging limited resources and local talent to disrupt the global AI supply chain. Despite constraints, DeepSeek's rapid rise has raised questions about AI innovation costs and China’s competitive momentum.