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

In the web revolution, we’re moving from developing sites as the main service to in fact building – so, the Airbnb of AI, the Stripe of AI,” he included. “They are not about the design. They have to do with the system and how you make the design helpful for jobs.”

The arrival of DeepSeek’s R1 model last week is viewed by some tech CEOs as an additional indicator LLMs are becoming increasingly commoditized.

R1 incorporates some crucial elements that differentiate it from other models on the market. For example, the model integrates a “combined precision” framework that uses a mix of full-precision 32-bit floating point (FP32) numbers and low-precision 8-bit drifting point (FP8) numbers.

The latter is quicker to procedure however can be less accurate. However, instead of depend on one or the other, DeepSeek utilizes FP8 for the majority of calculations and changes to FP32 for specific tasks where a greater degree of precision is required.

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

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

“In my opinion, we’re going to see a commoditization of AI. Many companies will accomplish competitive AI, and an absence of distinction will be bad for high-spending first-movers,” Calkins said by means of email.