Big tech is facing challenges due to the emergence of China's DeepSeek, an AI startup that released the cost-effective AI model R1. This has caused stock drops for major players like Google and Microsoft, while Apple has managed to rise. Analysts suggest that Apple's strategy of integrating AI rather than competing in cutting-edge development positions it well to benefit from the heightened interest in AI models that are cheaper and more efficient. Apple could capitalize on declining AI training costs and leverage improvements in its products while keeping consumer prices down.
Apple would be a beneficiary if the cost of AI training declined.
Apple rightly focuses on how to integrate AI as a product, rather than building the most cutting-edge models.
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