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

In the web transformation, we’re moving from developing sites as the main service to actually constructing internet-native so, the Airbnb of AI, the Stripe of AI,” he included. “They are not about the model. They are about 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 a more sign LLMs are ending up being increasingly commoditized.

R1 integrates some essential aspects that distinguish it from other models on the marketplace. For example, the model includes a “mixed precision” structure that uses a mix of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit floating 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 many estimations and changes to FP32 for particular jobs where a greater degree of precision is required.

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

“In my viewpoint, we’re going to see 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 by means of email.