Satya Nadella, CEO of Microsoft, said the spending was needed to overcome the capacity constraints that hampered the tech giant's ability to capitalize on AI.

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.

The tech giants vow to barrel ahead despite the jolt from China’s DeepSeek.

Microsoft on Wednesday forecast disappointing growth in its cloud computing business, sending its shares down 4.5% in after-hours trading as investors worry about big spending, elusive artificial intelligence revenue and competition from cheaper AI models from China.

Microsoft has moved surprisingly quickly to bring R1 to its Azure customers.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online

Microsoft MSFT.O has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday. The AI model will be available in the model catalog on the platforms and will join more than 1,800 models that Microsoft is offering.

Microsoft made DeepSeek's groundbreaking R1 AI model available on the Azure AI Foundry platform as well as GitHub.

Microsoft Corp. Chief Executive Officer Satya Nadella had some kind words for DeepSeek, the Chinese artificial intelligence startup that roiled his company’s shares earlier this week.

Microsoft will report its fiscal second-quarter results after Wednesday's closing bell, with investors focused on all things AI.

Earlier this week, many technology stocks sold off sharply on news of DeepSeek R1, the groundbreaking, low-cost AI model from China that materially lowered the cost of deploying AI. Amazon (NASDAQ: AMZN) founder Jeff Bezos once said,