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Inside Microsoft’s quick embrace of DeepSeek

The Chinese startup DeepSeek shook up the world of AI last week after showing its supercheap R1 model could compete directly with OpenAI’s o1. While it wiped nearly $600 billion off Nvidia’s market value, Microsoft engineers were quietly working at pace to embrace the partially open- source R1 model and get it ready for Azure customers. It was a decision that came from the very top of Microsoft.Sources familiar with Microsoft’s DeepSeek R1 deployment tell me that the company’s senior leadership ...

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