Apple stays cautious on AI as DeepSeek's budget model shakes up the industry

The AI landscape has been in flux since DeepSeek's R1 model shook the industry in late January. While OpenAI and Google aggressively push new AI tools and models, Apple has remained patient, a strategy that could pay off long-term.

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(Credit: Apple)

Back in October 2024, Apple's CEO Tim Cook described the company's strategy towards AI in simple terms:

"Not first, but best."

Four months later, this deliberate approach appears justified. Few could have anticipated that DeepSeek would build a competitor to OpenAI and Google on a budget of just $6 million - turning the entire market on its back. As a result, both OpenAI and Google have been forced to alter their business models and release offerings cheaper, and faster, to maintain their market share.

In contrast, Apple has been very conservative with its feature rollout. A recently leaked memo from Apple's AI chief John Giannandrea reveals that Apple is prioritizing a revamp of Siri's core infrastructure and improvements to its in-house AI models rather than racing to release new tools. While OpenAI and Google push frequent updates, Apple is focused on long-term AI development, with its next major LLM advancements reportedly not arriving until iOS 19.4 in 2026.

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Apple's AI Chief, John Giannandrea (Credit: TechCrunch)

Apple's cautious strategy positions them to effectively adapt to the changing tide. As tarrifs are introduced, and the cost of producing AI models decreases, so do business models. Microsoft, Google, Meta Platforms, and Amazon, all plan to increase their investments in AI to the sum of a combined $215 billion. However, if any more groundbreaking innovations occur, perhaps it will be cautious investors like Apple, or smaller, emerging AI players that will reap the benefits.

• Read more: ChatGPT makes previously paid feature available to everyone - no login required
• Read more: US researchers built a DeepSeek competitor for less than a tank of gas - and it's actually good
• Read more: Google releases Gemini 2.0 models: 'We kicked off the agentic era'