Large language models like those developed by Microsoft-backed firm OpenAI are set to become commoditized this year amid rapid advances toward next-generation artificial intelligence agents and more nimble, open-source rivals, according to top tech executives. Last week, Chinese AI firm DeepSeek released R1, an open-source reasoning model that claims to rival OpenAI’s o1 model on both cost and performance. Open-source refers to software whose source code is made freely available on the open web for possible modification and redistribution. This week, growing awareness of DeepSeek’s new model led to a severe slump in shares of Nvidia and other tech giants, as investors feared a possible retrenchment in spending on the powerful graphics processing units required to train and run advanced AI workloads. Nvidia lost close to $600 billion in market capitalization on Monday — the biggest single-day drop for any company in U.S. history. Meanwhile, executives and scientists at leading AI labs are all talking up a shift from large language models to so-called “AI agents” that can carry out actions on your behalf. LLMs are the foundational technology behind today’s generative AI apps. However, experts believe a push toward agentic AI systems — which incorporate LLM technology — this year will erode the value of these models.

Full opinion : Executives at leading AI labs say that large language models like those from OpenAI and Big Tech firms risk becoming commoditized in 2025.