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Benzinga
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DeepSeek's AI Breakthrough Benefits Microsoft, But Oracle Faces Cloud Growth Challenges: Analyst

1. DeepSeek's AI models are cheaper to build than current LLMs. 2. Lower running costs for AI benefit Microsoft significantly. 3. Microsoft could enhance AI infrastructure efficiency with emerging technologies. 4. Azure's data center scale expected to accelerate by late 2025. 5. DeepSeek's advancements may pressure Oracle amidst cloud growth.

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FAQ

Why Bullish?

Cost efficiencies in AI can boost Microsoft's competitive edge, similar to past gains seen in cloud margins.

How important is it?

The article highlights advancements affecting AI costs which could substantially impact Microsoft's profitability and market position.

Why Long Term?

Improvements in operational capabilities and lower costs will positively influence Microsoft’s growth trajectory over time.

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