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

In the internet transformation, we’re moving from developing sites as the to in fact developing internet-native companies – so, the Airbnb of AI, the Stripe of AI,” he included. “They are not about the design. They are about the system and how you make the model beneficial for jobs.”

The arrival of DeepSeek’s R1 design recently is seen by some tech CEOs as a more sign LLMs are becoming progressively commoditized.

R1 incorporates some crucial elements that differentiate it from other models on the marketplace. For instance, the model integrates a “mixed accuracy” structure that uses a mix of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit drifting point (FP8) numbers.

The latter is faster to process but can be less precise. However, rather than rely on one or the other, DeepSeek utilizes FP8 for the majority of calculations and switches to FP32 for specific jobs where a greater 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 wrote on social networks platform X, in an evident reference to DeepSeek.

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

“In my opinion, we’re visiting a commoditization of AI. Many business will achieve competitive AI, and an absence of distinction will be bad for high-spending first-movers,” Calkins said via e-mail.