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

In the internet transformation, we’re moving from developing sites as the main company to really building internet-native business – so, the Airbnb of AI, the Stripe of AI,” he added. “They are not about the design. They have to do with the system and how you make the model useful for jobs.”

The arrival of DeepSeek’s R1 model recently is seen by some tech CEOs as a further sign LLMs are becoming increasingly commoditized.

R1 includes some crucial aspects that separate it from other designs on the marketplace. For instance, the design incorporates a “mixed accuracy” structure that utilizes 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 precise. However, rather than depend on one or the other, DeepSeek utilizes FP8 for most computations and switches to FP32 for specific tasks where a greater degree of precision is required.

“As AI gets more effective and accessible, 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 evident referral to DeepSeek.

Meanwhile, Matt Calkins, CEO of U.S. software application company Appian, told CNBC that DeepSeek’s success just shows 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 business will accomplish competitive AI, and an absence of distinction will be bad for first-movers,” Calkins said by means of e-mail.