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,

Technology stocks were rocked to their core Monday after claims made by a Chinese start-up threatened to upend the existing artificial intelligence (AI) paradigm.