Apple is coming out of the gate with praise for the new Chinese AI model DeepSeek. Apple CEO Tim Cook said DeepSeek’s AI models represent “innovation that drives efficiency” during an earnings call Thursday while fielding questions from analysts about the iPhone maker’s AI ambitions.
“In general, I think innovation that drives efficiency is a good thing. And, you know, that’s what you see in that model,” said Cook, responding to an analyst’s question about how DeepSeek’s AI models would impact Apple’s margins.
READ: China disrupts AI market with DeepSeek: A better, cheaper version of ChatGPT? (January 27, 2025)
DeepSeek made waves when it was released earlier this week with its claim that their new AI model was developed within a budget of $6 million, which is a fraction of the cost of its western competitors like OpenAI.
Reportedly, Apple currently only has one AI partnership with OpenAI, which allows ChatGPT to answer complex questions from iPhone users in a private cloud.
Cook’s praise comes on the heels of a very impressive quarter for the tech giant. “Today Apple is reporting our best quarter ever, with revenue of $124.3 billion, up four percent from a year ago,” Cook said in a press release. Reportedly, revenue was up nearly across the board for the company’s Mac, iPad, and services divisions.
With this new stance, it might seem that Apple may be looking to cheaper alternatives for its AI needs.
China has seen significant growth in AI research and development, with companies and research institutions working on creating competitive models across fields like natural language processing (NLP), computer vision, and more.
READ: China’s AI DeepSeek-V3 stuns, disrupts and rattles Silicon Valley (January 27, 2025)
OpenAI and Apple have had limited direct public collaboration, but both companies are significant players in the AI space, with distinct approaches. OpenAI, known for developing large language models like GPT, focuses on cutting-edge AI research and models that can be applied across various domains, including language, coding, and even art. On the other hand, Apple has integrated AI and machine learning into its consumer products, such as Siri, Face ID, and iOS apps, with a focus on privacy and user experience.
While OpenAI has partnerships with tech giants like Microsoft, Apple has mostly pursued its own AI innovations. There have been instances of indirect overlap, as both companies share interests in areas like machine learning, but there isn’t a prominent, direct relationship between OpenAI and Apple. Both contribute to advancing AI technologies, though often in different ways and contexts.