Subj : Apple is the biggest winner of DeepSeeks new AI breakthrough To : All From : TechnologyDaily Date : Wed Jan 29 2025 11:45:06 Apple is the biggest winner of DeepSeeks new AI breakthrough Date: Wed, 29 Jan 2025 11:31:42 +0000 Description: Chinese startup DeepSeek just shocked the US AI industry. Find out why this might benefit Apple. FULL STORY ====================================================================== Last week, DeepSeek, a Chinese AI startup, announced its R1 reasoning model, a breakthrough that changes the world of AI. DeepSeeks model matches or even surpasses the quality of leading LLMs, but at a fraction of the training and running cost. This essentially commoditized what was once the exclusive domain of tech giants. Along with the model, DeepSeek released a detailed playbook describing how others can replicate their success, dramatically lowering the barriers to entry. Apple Just Saved Billions For the last few years, Apple has been criticized for lagging behind in the LLM wars. Analysts and journalists pointed out that while companies like OpenAI, Google, and Meta poured billions into building state-of-the-art large language models (LLMs), Apple seemed to be on the sidelines. In fact, some industry insiders went as far as to call Apples approach complacent. Yet, as it turns out, it just paid off in a way no one expected. This breakthrough means Apple can now develop competitive AI models without the multi-billion-dollar investments previously required. By staying out of the early stages of the AI arms race, Apple may have saved billions. Goodbye, OpenAI Partnership Apples perceived weakness in AI pushed it to form a partnership with OpenAI, a move that raised eyebrows across the tech world. Critics questioned the necessity of this alliance, with some calling it a panic move to compensate for Apples lack of in-house AI capabilities. Elon Musk, for instance, openly criticized the partnership, calling it creepy spyware and warning against potential privacy risks. Now, Apple has a way out. With DeepSeeks methodologies in hand, Apple no longer needs to rely on OpenAI for cutting-edge AI. They can cheaply develop their own models tailored to their ecosystem without external dependencies. This not only gives Apple the freedom to leave the partnership if they choose but also provides significant leverage in renegotiating terms. Efficient compute is a key advantage for Apple Over the past year, its become clear that LLMs alone wont be the ultimate differentiator in AI. Instead, the real value lies in data , user context, UI, and distribution. Apple already excels in these areas, with a massive ecosystem of devices and services that seamlessly integrate into users lives. But now, thanks to DeepSeeks breakthrough, Apple has an even greater advantage. DeepSeeks R1 model is designed for efficient inference, meaning it can run on standard hardware rather than requiring expensive, specialized GPUs. This aligns perfectly with Apples strengths. Apples devicesfrom iPhones to Macs are already optimized for high performance and energy efficiency. With this new capability, Apple can deploy powerful AI models directly on their devices, ensuring user privacy and reducing reliance on cloud-based solutions. There have long been rumors that Apple was studying how to run LLMs locally, and now that vision can become a reality. DeepSeeks innovations make it possible for Apple to deliver state-of-the-art AI experiences without compromising on efficiency or security. For Apples users, this means smarter devices that protect their data while delivering unmatched performance. Markets React DeepSeeks announcement had an impact across the tech industry. Nvidia, a company synonymous with AI hardware, saw its stock plummet by 17%, wiping $589 billion off its market value. Investors reacted to the realization that LLMs no longer require the kind of specialized hardware that Nvidias business depends on. Apple, on the other hand, remained unaffected. Its stock actually grew. Whether its caused by investors just moving their investments within a tech sector or whether investors also see that Apple might benefit more than any other company is a question for them. Whatever the reason it is, we live in exciting times and the times become more and more exciting for Apple as well. Checkout our comprehensive list of the best AI tools . This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. 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