Microsoft CEO Satya Nadella is optimistic about the future of AI, predicting that its use will "skyrocket" as it becomes more efficient and accessible. This comes amid the buzz surrounding DeepSeek, a Chinese AI startup that's made waves with its open-source AI model, R1. Nadella's comments were made in response to the attention DeepSeek's been receiving, and he cited the concept of Jevons paradox, which suggests that as technology becomes more efficient, its usage increases exponentially.
Nadella's prediction is backed by analysts, who believe that the market panic over DeepSeek is "overblown". They argue that the development of more efficient AI models will actually drive growth and adoption, rather than displacing existing players. Microsoft, in particular, is well-positioned to benefit from this trend, given its significant investments in AI research and development.
The company's partnership with OpenAI is a key part of its AI strategy, and Nadella has stated that OpenAI "wouldn't have existed" without Microsoft's early support. With its stake in OpenAI and its own AI-powered products, Microsoft is poised to be a major player in the AI landscape for years to come.
