If there was a bingo card for company earnings calls this quarter, DeepSeek would deserve its own square. Stock market surprises have a way of echoing through subsequent earnings calls, and the impact of DeepSeek is reverberating on Wall Street.
DeepSeek's Presence on Earnings Calls
On recent analyst calls, executives have increasingly fielded questions about the Chinese AI upstart and what its more cost-effective model means for their businesses. The name DeepSeek was mentioned in at least nine earnings calls last week, according to an AlphaSense search, with only a single mention prior to the company's announcement about its AI models. That number has grown as major tech companies including Alphabet, AMD, Palantir, and Amazon report their earnings.
Business Leaders' Perspectives
Rene Haas, the CEO of ARM, referred to DeepSeek as "great for the industry" on the chipmaker's February 5 earnings call. He emphasized that the company drives efficiency and lowers costs, expanding the demand for overall compute.
Lisa Su, the CEO of AMD, mentioned that DeepSeek is driving innovation that's beneficial for AI adoption. She highlighted the importance of new ways to bring about training and inference capabilities with less infrastructure.
Google's CEO Sundar Pichai praised DeepSeek's work during an earnings call, acknowledging the team's tremendous efforts and significant progress in efficiency over time.
Industry Insights and Responses
Shyam Sankar, CTO of Palantir Technologies, viewed DeepSeek's advancements as a sign that AI models are becoming more standardized and commoditized. He emphasized the competitive aspect of the AI landscape and the need for acknowledgment of the ongoing AI race.
Apple CEO Tim Cook expressed a positive outlook on DeepSeek's innovation, highlighting the drive for efficiency as a key benefit. He stressed the importance of the company's integrated approach to silicon and software.
Meta CEO Mark Zuckerberg identified DeepSeek as a new competitor and discussed the significance of open-source standards globally. He acknowledged DeepSeek's innovations and their potential impact on Meta's systems.
Microsoft CEO Satya Nadella recognized DeepSeek's innovations and their implications for the industry. He mentioned the integration of DeepSeek's models in Microsoft's PC laptops, emphasizing the importance of advancements in AI.
Future Implications and Industry Growth
CEOs like Arvind Krishna of IBM and John Stankey of AT&T highlighted the importance of DeepSeek's innovations in reducing costs and driving new applications and business models in the AI space.
Wendell Weeks, CEO of Corning, emphasized the need for continuous improvement in AI technologies to support sustainable business models and drive productivity in the industry.
Revathi Advaithi, CEO of Flex, recognized the impact of DeepSeek on demand for AI infrastructure and the potential for increased innovation and growth in the AI sector.
Overall, DeepSeek's presence on earnings calls and the responses from business leaders and tech giants reflect a growing recognition of the company's impact on the industry and the broader implications for AI innovation and adoption.
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By: dreuter@businessinsider.com (Dominick Reuter,Aditi Bharade,Kelsey Vlamis,Sarah Perkel,Meghan Morris)
Title: DeepSeek: The Impact on CEOs and Tech Giants
Sourced From: www.businessinsider.com/deepseek-hot-topic-earnings-calls-exec-analyst-questions-2025-1
Published Date: Thu, 06 Feb 2025 05:15:55 +0000
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