Sanctions prevented DeepSeek from buying the NVIDIA GPUs it needed to train AI models as powerful as OpenAI’s ChatGPT o1 reasoning model. Unable to purchase the AI hardware it needed, the Chinese startup devised a different method to train the DeepSeek R1 reasoning model, sending shockwaves around the world.
DeepSeek R1 training costs 3% to 5% of what training ChatGPT o1 costs. DeepSeek’s models are also cheaper to operate, further reducing access costs. On top of that, you can install DeepSeek on your computer and run it locally, as the company made the AI open-source. Well, at least the commercial product, as the training data set and instructions are still secret.
These developments tanked the market, with the likes of NVIDIA being the most impacted. Suddenly, investors realized that AI companies like OpenAI would not necessarily need to amass more compute power to develop better versions of AI.
But there is one stock that outperformed the market, and that’s Apple. It might seem like a surprising development considering how far behind Apple Intelligence looks to be right now compared to the likes of ChatGPT o1, Operator, Gemini, and DeepSeek R1.
However, Apple has a unique approach to AI, and DeepSeek’s innovations might help it deliver the AI future it wants to offer iPhone users. And I’m not suggesting Apple will incorporate DeepSeek as an alternative to ChatGPT in Apple Intelligence. Instead, Apple might learn from DeepSeek’s innovations and copy them.
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DeepSeek’s AI breakthrough may actually benefit Apple Intelligence originally appeared on BGR.com on Tue, 28 Jan 2025 at 17:52:00 EDT. Please see our terms for use of feeds.