During Apple’s Q3 earnings call on Thursday, CEO Tim Cook highlighted DeepSeek’s AI models as an example of “innovation that drives efficiency” while addressing questions about the company’s Apple AI strategy DeepSeek and margins. Cook’s remarks come amid growing scrutiny of Apple’s AI partnerships and the phased rollout of Apple Intelligence.
Cook’s Hybrid AI Model and DeepSeek’s Role
Cook emphasized Apple’s hybrid approach to AI: simpler tasks run locally on devices using Apple’s custom silicon chips, while complex tasks leverage cloud-based partnerships like OpenAI’s ChatGPT. When asked about DeepSeek’s AI models, Cook remarked, “Innovation that drives efficiency is a good thing. And that’s what you see in that model.” This aligns with Apple’s prudent and deliberate AI strategy, balancing cost and performance.
OpenAI Partnership and Allegations
Apple’s exclusive AI partnership with OpenAI allows iPhone users to access ChatGPT for complex queries via a private cloud. However, OpenAI recently accused DeepSeek of training its models using OpenAI’s technology through “distillation”—a potential policy violation. Despite this, Cook acknowledged DeepSeek’s innovation, hinting at future collaborations with other providers like Google Gemini or Anthropic Claude.
DeepSeek’s Efficiency Claims Under Scrutiny
While Cook praised DeepSeek’s AI models, analysts question their efficiency. Reports suggest DeepSeek used far more GPUs and computational resources than disclosed, contradicting its cost-effective branding. Still, DeepSeek’s discounted pricing compared to U.S. rivals like OpenAI positions it as a competitive player in Apple AI strategy DeepSeek
Apple Intelligence’s Mixed Impact
The rollout of Apple Intelligence has not yet boosted iPhone sales as anticipated. Quarterly sales dipped slightly year-over-year, though Cook noted stronger demand in regions where Apple’s AI features are live. Challenges persist, including technical missteps: Apple recently paused AI-generated news summaries after errors like falsely claiming “Luigi Mangione shot himself” in a BBC headline.
The Road Ahead for Apple AI strategy DeepSeek
Apple’s AI strategy remains fluid. Cook confirmed the OpenAI partnership isn’t exclusive, leaving room for integrations with models like DeepSeek’s AI in the future. However, ethical and technical hurdles—such as training transparency and hallucination risks—must be addressed to maintain consumer trust.
