11:13 AM EST, 01/29/2025 (MT Newswires) -- Microsoft ( MSFT ) and Meta Platforms' ( META ) plans for capital expenditures will face scrutiny in their quarterly results Wednesday amid potential artificial intelligence competition from Chinese startup DeepSeek, Wedbush Securities said in a note.

"The tech bears came out of hibernation mode this week in force after the Chinese startup DeepSeek AI shot across the bow claiming that the entire tech AI revolution story is now called into question as 'if DeepSeek can build this model for $6 million, why is Big Tech spending $400 billion-plus of capex this year?'," Wedbush said Wednesday in the note.

Over the next three years, Wedbush expects $2 trillion of AI-related capital expenditures with Meta expected to double down on plans to invest $60 billion to $65 billion in capital expenditures in 2025.

Wedbush also expects Microsoft ( MSFT ) to reiterate its $80 billion spending plan for fiscal 2025.

Microsoft ( MSFT ) shares fell 1% in recent Wednesday trading, and Meta eased 0.3%.

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