Apple’s CEO Tim Cook has praised the AI models from DeepSeek, stating that they represent “innovation that increases efficiency,” during an earnings call. He made this comment when answering queries about Apple’s objectives with respect to artificial intelligence from analysts.
Cook believes that any innovation which enhances efficiency is beneficial, and this is what is reflected in DeepSeek’s AI model. This was his response to an analyst’s query about how DeepSeek’s AI models would affect Apple’s profit margins.
Further, he highlighted that Apple uses a mixed model for its AI, where it operates some straightforward tasks locally, using its own AI models on its device’s custom silicon chips, while complex tasks are run in the cloud through collaborations with AI model providers.
Cook emphasized that Apple has always adopted a “careful and measured” approach to these kinds of expenses.
At present, Apple only has one AI partnership, with OpenAI. This allows ChatGPT to respond to complex inquiries from iPhone users in a private cloud.
Interestingly, OpenAI claimed this week to have proof that its AI models were used to train DeepSeek’s AI models through a process known as distillation. If this is the case, it would breach OpenAI’s usage policies and diminish DeepSeek’s achievements.
Despite this, Apple’s CEO did not refrain from complimenting DeepSeek.
Apple has suggested that its OpenAI partnership isn’t exclusive, and it might incorporate other companies’ AI models into the iPhone in the future, such as Google’s Gemini or Anthropic’s Claude. However, Cook did not suggest that Apple would integrate DeepSeek’s models.
Apart from OpenAI’s claims of IP theft, several technology analysts have implied that DeepSeek’s AI models were trained with a lot more GPUs and computation expenses than the company admits. This would mean that DeepSeek’s AI models weren’t trained as efficiently as some thought. However, the AI lab in China still sells access to its models at a significant discount compared to what American AI labs charge.
Cook was also asked by investors about the success of Apple Intelligence. The phased introduction of Apple’s AI features doesn’t seem to have led to an immediate increase in iPhone sales as some had predicted. Sales declined slightly in the last quarter compared to the previous year. However, Cook claimed that the company saw stronger sales in areas where Apple Intelligence had been launched compared to areas where it hadn’t.
Apple has had other problems with its AI features, besides their limited availability. It recently suspended its AI summaries of news articles after the feature generated misleading headlines. In a notable incident, Apple Intelligence inaccurately changed a BBC news headline, leading to false information.
