Microsoft's stock held its own while investors panicked about DeepSeek's potential impact on other corners of the technology sector. That suggests Wall Street isn't too worried that DeepSeek's advancements in cost efficiency pose a major threat to Microsoft.

DeepSeek’s success initially rattled investors’ assumptions about the AI spending wave that has swept through Silicon Valley in recent years.

Ouch… That is perhaps, in a word, the best way to describe the recent price action in AI stocks. And it was all spurred on by the launch of DeepSeek, China’s own powerful AI model. According to Ben Reitzes,