Jan 28- While the Tech sector shakes over double deep, Rosenblatt analysts weigh the benefits for companies like Meta (META, Financial), Apple (AAPL, Financial) and Amazon (AMZN, Financial) to their debut of DeepSeek's R1 AI model. Cheers and eyebrows have been raised over DeepSeek's claims that its high-performance AI can be delivered at a fraction of OpenAI's costs, and analysts say there are opportunities for leading tech giants to play into its advances.
Rosenblatt said that to benefit so much from this proposed design is exactly what Meta is poised to do. If DeepSeek's innovations are viable, the analysts say, they could speed up Meta's Llama model towards artificial general intelligence. CEO Mark Zuckerberg's announcement that Facebook would spend over $60 billion on AI in 2025 doubles as an announcement of his plans to build the company to dominate the space and possibly optimize costs.
Meanwhile, Apple could rely on DeepSeek to take advantage of its breakthroughs, particularly there 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, Rosenblatt added.
The business may also do well for Amazon's AWS. DeepSeek's technology could also help reduce the cost of foundational AI models for AWS offerings, and that could make AWS offerings more accessible for larger enterprises.
However, analysts said that for Alphabet (GOOG, Financial), cheaper AI training costs could heighten search competition, perhaps shaking up its market dominance.
