- This excerpt originally appeared in the Business Insider Today newsletter.
- This excerpt originally appeared in the Business Insider Today newsletter.
A few weeks ago, Big Tech had several topics to address during earnings. Now, only one seems to matter: DeepSeek.
The Chinese AI startup’s chaotic introduction has left investors and the tech industry scrambling. But DeepSeek’s timing is also opportune. Big Tech companies begin reporting earnings today after the closing bell, giving analysts a chance to press them on the impact DeepSeek might have, writes BI’s Jordan Hart.
DeepSeek’s more-with-less approach to AI model development won’t affect Big Tech all the same way. Here’s what to look out for among the Magnificent Seven stocks as they report earnings.
January 29
Microsoft: As the biggest backer of OpenAI, which sits at the center of the DeepSeek drama, Microsoft will likely get some pointed questions about whether it’s rethinking things. CEO Satya Nadella has already taken a rising-tide-raises-all-ships view, referencing a technological and economic belief that increased efficiency will boost consumption.
Meta: Mark Zuckerberg hasn’t backed down from his pledge to make more than $60 billion in capital expenditure investments this year, with a strong focus on AI. That might raise investors’ eyebrows considering DeepSeek showed what’s possible with fewer resources. But the silver lining is DeepSeek’s potential validation of open-source models over proprietary ones, which is something Meta already subscribes to. Meanwhile, TikTok’s uncertain future could be a benefit for Meta.
Tesla: AI plays a key role in Tesla’s future plans, specifically around autonomous vehicles, but Elon Musk will likely face a lot of other questions. From his ongoing pay dispute, to Tesla’s first year-over-year decline in sales, to what the new administration, one he is deeply involved with, means for the EV maker.
January 30
Apple: Sometimes, slow and steady wins the race. Apple’s lack of its own leading AI models, something it was criticized for in 2024, now looks like a massive plus. A new player entering the space at a much lower price point will likely help Apple, analysts told BI, as its focus is on integrating AI models into products instead of building them.
February 4
Alphabet: Just like Microsoft, Alphabet spending big to build out proprietary models means the DeepSeek news may have put them on the defensive. Still, the threat of China surpassing the US in AI could be a chip Google can play as a judge mulls how to resolve its antitrust violations.
February 6
Amazon: Much like Apple, Amazon has tried to take an agnostic approach to AI development by offering clients a diverse set of AI models. It’s already seen customer interest in checking out DeepSeek. Its willingness to tout other companies’ wares could help it gain more cloud market share early as companies look to experiment with different model providers and avoid getting locked in.
February 26
Nvidia: The AI chip giant fell the hardest on Monday, and will also have the longest time to assess the situation. Improving efficiency could just increase demand for compute power, which would be good for Nvidia. But DeepSeek using older chips potentially throws a wrench in Nvidia’s ambitious plan of launching a new chip every year. And the potential for tariffs on chips made in Taiwan would also be a massive headache.
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