Why Wall Street did not punish Apple and how the tech giant can benefit the most from China’s DeepSeek

With Apple Intelligence, Apple has been pursuing a akin attack of being the best, not the first. (Image credit: Anuj Bhatia/Indian Express)

It conscionable shows that Apple’s hidebound, old-school attack whitethorn person saved the company—something nary 1 anticipated erstwhile everyone criticised the iPhone shaper for not taking risks and being mode down the curve successful investing successful generative AI. But Apple, successful particular, has a estimation for caution, and though it did motorboat the Apple Intelligence suite of AI features, it became wide from the opening that artificial quality had a agelong mode to go.

But with the accomplishment of the Chinese startup DeepSeek into the AI market, and however its open-source attack tin flip the communicative and alteration the trajectory of AI beyond the questions of grooming costs and superior concern levels, it could really assistance Apple. So far, AI has been perceived done the lens of however Silicon Valley wanted to acceptable the narrative—i.e., scaling up AI is lone imaginable by investing more. In reality, however, each of the large American tech companies was eating its ain tail, promising that erstwhile AI was afloat developed, lone the profits would beryllium distributed wrong the closed circle—after all, the biggest buyers of AI exertion were them. DeepSeek has challenged the presumption quo, which is wherefore everyone is rushing backmost to the drafting committee and looking for alternate models.

Visitors effort Apple products astatine an Apple Store successful Palo Alto, California. (Image credit: Anuj Bhatia/Indian Express)

For Apple, though, the payment is that it has ever been successful the user abstraction and has ne'er focused connected the endeavor abstraction similar Microsoft. Additionally, its short-term profits are not tied to generative AI. DeepSeek’s attack to AI volition thrust artificial quality to the masses, and Apple’s strategy has besides been the same, arsenic it is truthful beardown with its hardware and has the backing of the iPhones and Macs.

Where Apple tin leverage DeepSeek’s opens-source AI models is by integrating them into its hardware and launching Apple Intelligence features based connected that, relying heavy connected on-device capabilities portion keeping the privacy-layer intact. Apple has done the aforesaid by intimately moving with OpenAI and Google for the existent acceptable of Apple Intelligence features, but DeepSeek’s caller attack is much efficient, little capital-intensive, and easier to implement, arsenic it leverages open-source AI models. This means Apple tin rapidly physique caller features arsenic portion of Apple Intelligence successful little clip and rotation them retired faster, without having to walk heavy connected licensing fees to usage closed AI models from OpenAI and Google. This strategy works for Apple due to the fact that what DeepSeek is doing is pushing for smaller, much businesslike models that necessitate little almighty hardware and present the aforesaid level of performance—something Apple would similar to incorporate, arsenic the institution is each for smaller models moving on-device.

Apple Intelligence is simply a acceptable of AI tools integrated into the operating system, which relies heavy connected on-device processing to present idiosyncratic quality without collecting users’ data. (Image credit: Anuj Bhatia/Indian Express)

Even if Apple doesn’t make its ain AI models and lone relies connected DeepSeek’s models, it tin inactive enactment competitory successful the AI contention without spending ample amounts of wealth to make and bid AI models oregon put successful AI infrastructure—something different tech companies are present facing: however and erstwhile they volition recoup their investments. Apple’s concern exemplary is precise clear: it sells the iPhone and makes wealth from some hardware and services.

By focusing connected integrating AI models into its hardware alternatively than gathering its own, Apple opens the doorway to complaint for Apple Intelligence features if it chooses and rotation them retired arsenic portion of a caller service. It’s up to Apple—it tin determine whether to complaint consumers for Apple Intelligence features oregon dainty AI arsenic a secondary feature. The information is that DeepSeek’s AI attack whitethorn positively interaction however Apple sees and builds Apple Intelligence. It besides shows that Apple doesn’t request to rush; it tin bash things its ain way.