Edition 3: The AI Race Heats Up

This week, I've been watching the AI space and it's been a little loud! DeepSeek just stormed to the top of the App Store in the US, shaking things up in both media and market spaces. This isn't just a headline, it could be a a significant shift in how we view AI as developers.

Author

Justin Fraenkel
January 31, 2025

Justin Fraenkel - 31 January 2025

Hello web2'ers,

What's Going On?

The arrival of DeepSeek has effectively moved billions in the market overnight, forcing even giants like Meta and Google to reconsider their strategies. For me, the pace at which AI is evolving since ChatGPT's debut two years ago is staggering. We're seeing multi-modal language bots, reasoning models cracking complex maths and coding, and now, we're all jumping into "agentic systems" as we watch how to outpace or match China's tech advancements.

The Bigger Picture

From my perspective, the journey to this point started with the transformer model in 2017, leading to a cascade of innovations. We're now in the middle of the chatbot wars, where reasoning models are the new frontier. With over a trillion dollars invested in AI in the last decade, the big question for us is: where are we going to see the real payoff? This is our chance to define that return through our innovations.

The Current Landscape of AI Development

DeepSeek's rise in 2025 is a game-changer, signaling a shift in the AI industry's dynamics. With fierce competition and significant investments, the focus is on out-innovating others in language models, reasoning, and agentic systems. This evolution suggests we're moving beyond initial AI hype, aiming for real-world utility and challenging the established tech giants.

Opportunities for New AI Developers

For new developers, DeepSeek's emergence highlights a landscape ripe with opportunities. The democratization of AI tools means less need for a deep technical background to start innovating. Developers can now focus on niche applications, leveraging AI for practical solutions in fields like healthcare or entertainment, where the market is hungry for innovation over just new models.

Navigating the AI Ecosystem

With DeepSeek setting new benchmarks, new developers must adapt quickly. The key now is to understand not just how to build AI but how to apply it in ways that resonate with users. Distinguishing hype from substance will be crucial, alongside mastering data ethics and user-centric design, to make a mark in this evolving arena.

Cheers for now,

Justin