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Microsoft and Meta Address DeepSeek Threat. Copy and Surpass Is the Strategy. - Barron's

1. DeepSeek competes with Western AI firms at lower costs, affecting MSFT. 2. MSFT plans to integrate DeepSeek's advancements into Azure services. 3. Open-source model access could impact MSFT's partnership with OpenAI negatively. 4. Meta aims for cheaper AI solutions enhancing its advertising tools, indirectly affecting MSFT.

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FAQ

Why Bearish?

MSFT faces competitive pressure from lower-cost AI models, potentially reducing Azure's revenue.

How important is it?

The emergence of DeepSeek could reshape the AI landscape, impacting MSFT's market stance.

Why Short Term?

Immediate concerns over pricing pressure could lead to short-term declines in MSFT stock.

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