As the AI rivalries are heating up and Tim Cook is praising DeepSeek, calling it a ‘good thing’ is making me wonder about the actual hidden meaning behind it. Does it mean, ‘let’s seal the deal’ or ‘we are watching you closely’? Either way, DeepSeek is floating high in the sky and I believe whether it’s negative comments or appraisals, they don’t bother about it.
After the app stores’ popularity in recent weeks, DeepSeek’s AI models were praised by Apple CEO Tim Cook for their efficiency enhancement. He announced a collaboration with ChatGPT on Apple’s hybrid AI initiative, but refrained from discussing the possibility of incorporating DeepSeek’s models due to competition from OpenAI.
Innovation driving efficiency:
During Apple’s earnings call with investors, Cook was asked about the impact of DeepSeek’ AI models on margins. He replied, “In general, I think innovation that drives efficiency is a good thing. And, you know, that’s what you see in that model.” As DeepSeek was dominating US app stores, it caused quite a chaos among AI giants as their perception of American dominance was challenged. This implies that the Chinese AI startup is leading the way in an efficient AI era, as innovation that drives efficiency is generally beneficial.
When asked about Apple’s AI strategy, Cook went into detail about the hybrid model strategy in the realm of AI, highlighting its effectiveness. He said, “From a CapEx point of view, we’ve always taken a very prudent, deliberative approach to our expenditure, and we continue to leverage a hybrid model, which I think continues to serve as well.” Although Apple has been open about incorporating AI models from Google and Anthropic, there is no definitive agreement on this matter, as it was not disclosed by Cook if Apple would include DeepSeek’s open-source models in future upgrades.
DeepSeek and OpenAI rivalry:
In a paper released last month, DeepSeek revealed that its V3 language model was constructed at apparently $5.6 million and was programmed in a ma\nner to operate on older-generation Nvidia H800 GPUs. Google, Anthropic, and OpenAI have spent billions of dollars on creating similar models as well but fail to surpass DeepSeek’s V3 model. On the other hand, OpenAI alleges DeepSeek that it is using a ‘distillation’ method to train its models with data from other AI systems. Whether this claim by OpenAI is another random assumption or if it holds some accuracy to it, concerns about DeepSeek and its potential impact on competitive AI markets are rising.
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