DeepSeek and the AI Arms Race

A Breakthrough or Just Another Step Toward Commoditization?

DeepSeek’s latest approach to AI efficiency is making waves, and for good reason. The Mixture of Experts (MoE) model, is considered an interesting but unreliable alternative to dense models like GPT, has always faced serious challenges—uneven workload distribution, noisy information sharing, hardware limitations, and a lack of specialization. DeepSeek claims to have cracked those problems, delivering both efficiency and reliability while running on cheaper hardware.

On the surface, this is a fascinating development. If their approach scales, it reinforces a broader trend I’ve been tracking - the rapid commoditization of AI models. The old assumption that only a handful of players could build and deploy powerful AI is quickly breaking down. We’re find ourselves in an environment where new models can emerge, hit the market, and reshape expectations within months.

But whi…