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

In the internet revolution, we’re moving from constructing sites as the main business to actually building internet-native business – so, the Airbnb of AI, the Stripe of AI,” he included. “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 further indication LLMs are becoming significantly commoditized.

R1 incorporates some essential aspects that separate it from other designs on the market. For example, the model integrates a ” precision” structure that utilizes a mix of full-precision 32-bit drifting point (FP32) numbers and low-precision 8-bit floating point (FP8) numbers.

The latter is faster to process but can be less precise. However, instead of count on one or the other, DeepSeek utilizes FP8 for a lot of estimations and switches to FP32 for specific tasks where a greater degree of accuracy is required.

“As AI gets more effective and available, we will see its use skyrocket, turning it into a product we just can’t get enough of,” Microsoft CEO Satya Nadella wrote 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 reveals that AI models are going to become more of a commodity in the future.

“In my viewpoint, we’re visiting a commoditization of AI. Many business will attain competitive AI, and a lack of distinction will be bad for high-spending first-movers,” Calkins said through email.

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