Key Takeaways Microsoft, Meta, and IBM all highlighted healthy growth in their AI businesses in the last three months of 2024.Microsoft and Meta, which cumulatively expect to invest nearly $150 billion in infrastructure in their respective 2025 fiscal years,

Cut to Microsoft and Meta 's earnings calls Wednesday night and things were hunky dory. The CEOs of both companies, while acknowledging the efficiency improvements DeepSeek introduced to its AI models,

Chinese startup DeepSeek claims to offer competitive AI models at lower costs, raising doubts about U.S. tech giants' investments in AI. Microsoft and Meta defend their significant spending, highlighting its importance for long-term strategic advantage amidst increasing demand for AI solutions.

AI revenue run rate reached $13 billion, as the company reported $69.6 billion in revenue for the December quarter, up 12%, with earnings of $3.23/share, topping Wall Street's expectations by both measures.

Microsoft Corp. said Wednesday that its profit for the October-December quarter grew 10% from the same time last year as it works to capitalize on the huge amounts of money it has spent to advance its artificial intelligence technology.