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

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

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

R1 includes some essential elements that distinguish it from other models on the marketplace. For example, the design incorporates a “combined accuracy” framework that utilizes a combination of full-precision 32-bit floating point (FP32) numbers and low-precision 8-bit drifting point (FP8) numbers.

The latter is much faster to procedure but can be less accurate. However, rather than count on one or the other, DeepSeek uses FP8 for many calculations and changes to FP32 for certain jobs where a greater degree of precision is required.

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

Meanwhile, Matt Calkins, CEO of U.S. software company Appian, told CNBC that DeepSeek’s success merely 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 companies will AI, and a lack of distinction will be bad for high-spending first-movers,” Calkins said by means of email.