Microsoft CEO Satya Nadella believes that DeepSeek will inevitably help the American AI industry rather than hurt it. Microsoft chief executive Satya Nadella isn’t pressed about Chinese AI startup DeepSeek’s recent success.

There's a lot of noise in the AI market at the start of 2025. But Microsoft CEO Nadella has seen it all before.

Distilled R1 models can now run locally on Copilot Plus PCs, starting with Qualcomm Snapdragon X first and Intel chips later. This brings a lot more AI capabilities to Windows, and it’s something Microsoft was already working on with its Phi Silica language models.

In an apparent response to the attention on a new AI model out of China, Microsoft CEO Satya Nadella posted online

Microsoft Corp. Chief Executive Officer Satya Nadella had some kind words for DeepSeek, the Chinese artificial intelligence startup that roiled his company’s shares earlier this week.