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.

Zhejiang, home to AI upstart DeepSeek and other firms, endeavours to be a world-leading incubator for the bleeding edge of tech As China's DeepSeek - a relatively recent entrant in a crowded field of companies producing artificial intelligence (AI) models - threatens the dominance of the United States in the nascent but highly competitive sector,

China on Monday unveiled its DeepSeek artificial intelligence, shocking the U.S. tech sector and sending chip-maker Nvidia's stock tumbling. Anna Coren reports.

"Investing 'very heavily' in capital expenditure and infrastructure is going to be a strategic advantage over time," Mark Zuckerberg said.

Meta (NASDAQ:META), and Tesla (NASDAQ:TSLA) are set to report their earnings after the bell, with investors closely watching AI-related capital expenditures.