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.

Wall Street has perceived the company to have an almost unbreachable defense against competition with its offerings of high-tech chips. The company’s rapid growth and windfall profit have helped push other technology firms and the Nasdaq Composite Index to record after record,

Shares in Nvidia, the leading US AI firm, dropped by 17 percent yesterday, the biggest one-day loss to the market capitalisation of a company in history, after the announcement by Chinese firm DeepSee