How DeepSeek and Next-generation aI Agents might Erode Value Of Language Models

In the web transformation, we’re moving from building sites as the primary business to actually building internet-native companies – so, the Airbnb of AI, the Stripe of AI,” he included. “They are not about the model. They are about the system and how you make the for tasks.”

The arrival of DeepSeek’s R1 design last week is viewed by some tech CEOs as a further indication LLMs are ending up being progressively commoditized.

R1 incorporates some key aspects that distinguish it from other models on the market. For instance, the design integrates a “combined precision” structure that uses a combination of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit drifting point (FP8) numbers.

The latter is much faster to procedure but can be less precise. However, rather than rely on one or the other, DeepSeek uses FP8 for many estimations and switches to FP32 for specific tasks where a higher degree of accuracy is required.

“As AI gets more effective and available, we will see its usage skyrocket, turning it into a product we simply can’t get enough of,” Microsoft CEO Satya Nadella composed on social media platform X, in an apparent referral to DeepSeek.

Meanwhile, Matt Calkins, CEO of U.S. software company Appian, told CNBC that DeepSeek’s success just reveals that AI models are going to end up being more of a product in the future.

“In my opinion, we’re going to see a commoditization of AI. Many business will accomplish competitive AI, and a lack of differentiation will be bad for high-spending first-movers,” Calkins said through email.