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.

Fresh on the heels of a controversy in which ChatGPT maker OpenAI accused the Chinese company behind DeepSeek R1 of using its AI model outputs against its terms of service, OpenAI's largest investor Microsoft announced on Wednesday that it will now host DeepSeek R1 on its Azure cloud service.