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

In the internet transformation, we’re moving from building sites as the main business to really building internet-native companies – 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 design beneficial for jobs.”

The arrival of DeepSeek’s R1 design last week is seen by some tech CEOs as a more indication LLMs are ending up being progressively commoditized.

R1 integrates some essential elements that separate it from other models on the marketplace. For example, the model includes a “blended precision” framework that uses 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 but can be less accurate. However, rather than count on one or the other, DeepSeek uses FP8 for most computations and switches to FP32 for certain tasks where a greater degree of precision is required.

“As AI gets more efficient and accessible, 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 media platform X, in an apparent recommendation 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 will accomplish competitive AI, and an absence of distinction will be bad for high-spending first-movers,” Calkins stated through e-mail.