Satya Nadella thinks that AI will scale after DeepSeek’s secrets become commoditized

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 MSFT.O has made Chinese startup DeepSeek's R1 artificial intelligence model available on its Azure cloud computing platform and GitHub tool for developers, the U.S. company said on Wednesday.