Jan 28 – The tech sector is experiencing a significant shake-up. Rosenblatt analysts are weighing the benefits for companies like Meta, Apple, and Amazon due to the debut of DeepSeek’s R1 AI model. There are claims that DeepSeek’s high-performance AI can be delivered at a fraction of OpenAI’s costs, and analysts say there are opportunities for leading tech giants to take advantage of its advances.
Rosenblatt says Meta is well-positioned to benefit from this proposed design. If DeepSeek’s innovations are viable, they could speed up Meta’s Llama model towards artificial general intelligence. Meta plans to spend over $60 billion on AI in 2025 to build the company and dominate the space, possibly optimizing costs.
Apple could also rely on DeepSeek to take advantage of its breakthroughs, particularly in localized AI development for China. Architectural improvements may enable better local processing for AI on iPhone, helping to bring features and drive new features for premium devices.
The business may also do well for Amazon’s AWS. DeepSeek’s technology could help reduce the cost of foundational AI models for AWS offerings, making AWS offerings more accessible for larger enterprises.
However, analysts say that for Alphabet, cheaper AI training costs could heighten search competition, perhaps shaking up its market dominance.
