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

In the web transformation, we’re moving from constructing websites as the primary company to actually developing internet-native – 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 design last week is viewed by some tech CEOs as a further sign LLMs are becoming increasingly commoditized.

R1 includes some essential elements that differentiate it from other models on the market. For example, the model integrates a “blended precision” structure that utilizes a combination of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit floating point (FP8) numbers.

The latter is much faster to process however can be less accurate. However, rather than rely on one or the other, DeepSeek utilizes FP8 for a lot of computations and changes to FP32 for specific jobs where a higher degree of accuracy is needed.

“As AI gets more efficient and available, we will see its use 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 obvious reference 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 product in the future.

“In my opinion, we’re visiting a commoditization of AI. Many business will accomplish competitive AI, and a lack of differentiation will be bad for high-spending first-movers,” Calkins said by means of e-mail.