New Delhi, Jan. 28 -- The smaller variants of DeepSeek's open-source large language model (LLM) will be more advantageous for smartphones, as AI has gained no traction with consumers so far, Jefferies, the investment banking and capital markets firm highlighted in its latest report.

The report, however, added that DeepSeek's success refers to another company that has made strides in AI, possibly with a more capable model or larger data set.

DeepSeek's progress is seen as a hopeful sign for the future of AI, suggesting that it may be possible to overcome the limitations of smaller models like Apple's.

"If smaller models can work well, it is potentially positive for smartphone. We are bearish on AI smartphone as AI has gained no traction...