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How DeepSeek and Next-generation aI Agents might Erode Value Of Language Models
In the web revolution, we’re moving from building websites as the main service to in fact developing internet-native so, the Airbnb of AI, the Stripe of AI, » he added. « They are not about the design. They have to do with the system and how you make the model useful for jobs. »
The arrival of DeepSeek’s R1 design last week is viewed by some tech CEOs as a further indicator LLMs are ending up being significantly commoditized.
R1 includes some key elements that differentiate it from other designs on the marketplace. For example, the model includes a « combined accuracy » framework that uses a mix of full-precision 32-bit floating point (FP32) numbers and low-precision 8-bit drifting point (FP8) numbers.
The latter is much faster to process but can be less accurate. However, rather than rely on one or the other, DeepSeek uses FP8 for many computations and switches to FP32 for certain jobs where a higher degree of precision is needed.
« As AI gets more efficient and accessible, we will see its usage skyrocket, turning it into a commodity we simply can’t get enough of, » Microsoft CEO Satya Nadella composed on social media platform X, in an apparent reference to DeepSeek.
Meanwhile, Matt Calkins, CEO of U.S. software firm Appian, informed CNBC that DeepSeek’s success just shows that AI designs are going to become more of a commodity in the future.
« In my viewpoint, we’re going to see a commoditization of AI. Many companies will achieve competitive AI, and a lack of differentiation will be bad for high-spending first-movers, » Calkins stated via email.