10 AI News Investors Probably Missed

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) delivers cloud, productivity, and business solutions driven by AI, enhancing operational efficiency and security while making substantial investments in AI development.

On January 29, Bloomberg reported that Microsoft and OpenAI are investigating whether a group linked to Chinese AI startup DeepSeek improperly accessed data from OpenAI’s technology. Microsoft’s security team reportedly observed individuals, possibly connected to DeepSeek, extracting large amounts of data via OpenAI’s API. DeepSeek recently launched R1, an open-source AI model that claims to rival leading U.S. AI models at a lower cost. OpenAI acknowledged that some Chinese groups use distillation to replicate U.S. AI models and is reviewing indications that DeepSeek may have done so improperly. DeepSeek, however, maintains that its R1 model was built using open-source AI systems rather than proprietary technology from OpenAI, the report states.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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