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

In the web transformation, we’re moving from constructing websites as the primary business to in fact constructing internet-native companies – so, the Airbnb of AI, the Stripe of AI,” he added. “They are not about the model. They have to do with the system and how you make the model beneficial for jobs.”

The arrival of DeepSeek’s R1 model recently is seen by some tech CEOs as a further sign LLMs are ending up being significantly commoditized.

R1 integrates some key elements that separate it from other designs on the marketplace. For example, the design incorporates a ” accuracy” structure that uses a combination of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit floating point (FP8) numbers.

The latter is faster to process however can be less accurate. However, instead of rely on one or the other, DeepSeek utilizes FP8 for many estimations and changes to FP32 for specific jobs where a higher degree of accuracy is needed.

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

Meanwhile, Matt Calkins, CEO of U.S. software company Appian, told CNBC that DeepSeek’s success simply shows that AI models are going to become more of a product in the future.

“In my viewpoint, we’re visiting a commoditization of AI. Many companies will accomplish competitive AI, and a lack of differentiation will be bad for high-spending first-movers,” Calkins said via email.