Microsoft shares fell in Europe on Thursday after it issued a downbeat forecast for its cloud business, while Facebook parent Meta shares rose after beating expectations, as investors scrutinised the companies' spending on artificial intelligence.

The chief executives of Microsoft and Meta defended their hefty investments on artificial intelligence, days after Chinese upstart DeepSeek revealed a breakthrough in low-cost AI computing that shook the U.

Chinese startup DeepSeek claims to offer competitive AI models at lower costs, raising doubts about U.S. tech giants' investments in AI. Microsoft and Meta defend their significant spending, highlighting its importance for long-term strategic advantage amidst increasing demand for AI solutions.

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 Corporation (MSFT) launched the highly popular DeepSeek R1, a powerful AI model, on its Azure cloud platform GitHub for developers.

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.