During today’s investor call, Apple CEO Tim Cook discussed the implications of the Chinese AI company DeepSeek, emphasizing the positive impact this breakthrough technology has on Apple’s operations.
Analyst Ben Reitzes from Melius inquired about Apple’s perspective on DeepSeek’s emergence. He noted that DeepSeek signifies a reduction in the costs associated with developing and executing advanced AI models.
Hi Tim, I anticipated this question. There seems to be a consensus that you stand to gain from decreased computing expenses. I’d appreciate your global perspective on this situation and whether any developments have influenced your outlook on margins and operational capabilities, particularly in light of the potential for diminished costs.
Cook acknowledged the significant advancements that DeepSeek has achieved in reducing the costs of training and operating their V3 model, which rivals the ChatGPT o3 reasoning model:
Generally, innovation that enhances efficiency is beneficial, and that’s clearly evident in that model.
Our close integration of silicon and software is uniquely advantageous. As you know, we process data both on the device and in a private cloud setting, which echoes the architectural processes occurring on the device itself.
Moreover, from a capital expenditure standpoint, we’ve always approached our spending cautiously and methodically, ensuring we maximize our hybrid model’s potential, which has consistently yielded positive results.
This hybrid approach, which focuses on developing Apple Intelligence while also collaborating with OpenAI’s ChatGPT, has been well-received this week. Apple appears to be taking a measured approach to AI investments now that costs for development and operations are expected to decline. While this doesn’t mean Apple will ease its AI initiatives, it certainly alleviates some immediate pressures. For further insights on DeepSeek and its disruptive impact on the U.S. AI landscape, check out our 9to5Neural article.
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