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

In the internet revolution, we’re moving from developing sites as the main organization to actually developing internet-native companies – so, the Airbnb of AI, the Stripe of AI,” he added. “They are not about the design. They are about the system and how you make the design helpful for jobs.”

The arrival of DeepSeek’s R1 design last week is seen by some tech CEOs as a further indication LLMs are becoming increasingly commoditized.

R1 integrates some crucial elements that differentiate it from other designs on the marketplace. For instance, the design incorporates a “combined precision” framework that utilizes a mix of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit floating point (FP8) numbers.

The latter is faster to process but can be less accurate. However, rather than rely on one or the other, DeepSeek utilizes FP8 for many calculations and switches to FP32 for particular tasks where a greater degree of accuracy is required.

“As AI gets more and available, we will see its usage skyrocket, turning it into a product 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, informed CNBC that DeepSeek’s success merely reveals that AI designs are going to become more of a commodity in the future.

“In my opinion, we’re going to see a commoditization of AI. Many companies will achieve competitive AI, and a lack of distinction will be bad for high-spending first-movers,” Calkins said through e-mail.