During Apple’s latest earnings call, CEO Tim Cook gave a nod to Chinese AI lab DeepSeek, calling its models “innovation that drives efficiency” when grilled about how third-party AI might impact Apple’s bottom line. But the compliment comes with a side of controversy — and a few unanswered questions.
Cook’s Hybrid AI Playbook
Cook doubled down on Apple’s strategy of mixing on-device AI (powered by Apple’s custom chips) with cloud-based partnerships for heavier tasks. “We’ve always been prudent and deliberate with these investments,” he said. Right now, OpenAI’s ChatGPT is Apple’s sole AI partner, handling complex queries in a “private cloud.”
But Cook hinted that Google’s Gemini or Anthropic’s Claude could join the party later. Notably, he didn’t mention DeepSeek — even as he praised its efficiency.
The DeepSeek Drama
Why the awkward tension? OpenAI just accused DeepSeek of training its models using OpenAI’s tech via “distillation” — a big no-no if true. Critics also claim DeepSeek’s models likely burned way more $$$ on GPUs than admitted, making its “efficiency” claims… debatable.
Still, DeepSeek’s models are cheap AF compared to U.S. rivals, which might explain Cook’s interest.
Apple Intelligence: Not Exactly a Sales Supercharger
Investors pressed Cook on whether Apple’s own AI features (dubbed Apple Intelligence) are boosting iPhone sales. Short answer? Nope. Sales dipped slightly last quarter vs. 2024. Cook tried to spin it, saying regions with Apple Intelligence saw “stronger demand” — but let’s just say the AI hype hasn’t translated to lines around the block.
Oh, and Apple’s AI isn’t flawless: The company recently paused its AI news summaries after the tool hallucinated a wildly incorrect BBC headline, falsely claiming a murder suspect had “shot himself.” Yikes.
The Bottom Line
Cook’s playing it cool, but the stakes are high:
- Can Apple’s hybrid AI model keep up with rivals?
- Will DeepSeek’s drama scare off potential partnerships?
- And when will Apple Intelligence actually move the needle?
For now, the AI race remains messy — and Cook’s walking a tightrope.
Photo: Bloomberg
