Apple's cautious approach to AI proves to be smart, while competitors overspend

From Nasdaq: 2025-02-07 04:10:00

A new artificial intelligence (AI) large language model in China, DeepSeek, developed on a small budget of around $6 million, is causing concern among tech investors. Some worry that overspending on AI may have been unnecessary if quality models can be developed inexpensively.

Apple’s cautious approach to AI, focusing on privacy and taking it slow with new features, is proving to be a smart strategy. While competitors are spending billions on AI, Apple’s more modest $10.8 billion expenditure this year could ensure profitability in the long run.

By avoiding the rush to innovate and letting other tech companies take on the risk, Apple can maintain high profitability and stock value. The company’s slow-and-steady approach to AI could lead to strong demand for products on its 2.2 billion devices worldwide.

Investing in Apple stock for the long haul could be a wise choice, as the company’s levelheaded approach to AI sets it up for success. With a user base of over 2.2 billion devices, Apple’s cautious strategy could pay off in the long run.



Read more at Nasdaq: The DeepSeek News Makes Apple’s Artificial Intelligence Strategy Look Genius