{"id":22435,"date":"2025-01-28T16:59:45","date_gmt":"2025-01-28T15:59:45","guid":{"rendered":"https:\/\/timoelliott.com\/blog\/?p=22435"},"modified":"2025-01-28T16:59:45","modified_gmt":"2025-01-28T15:59:45","slug":"deepseek-and-the-real-value-of-ai-models-hint-its-what-you-do-with-them","status":"publish","type":"post","link":"https:\/\/timoelliott.com\/blog\/2025\/01\/deepseek-and-the-real-value-of-ai-models-hint-its-what-you-do-with-them.html","title":{"rendered":"DeepSeek and the Real Value of AI Models (Hint: It’s What You DO With Them)"},"content":{"rendered":"\n

The recent launch of DeepSeek, a groundbreaking AI model from China, has sent shockwaves through the global stock markets. With its impressive capabilities and cost efficiency, DeepSeek has quickly become a significant competitor to established Western technologies like OpenAI\u2019s ChatGPT. Nvidia\u2014a major supplier of AI hardware\u2014saw a historic 17% drop in its stock value, wiping out nearly $593 billion in market capitalization. Other tech giants, including Microsoft, Meta, and Alphabet, also experienced sharp declines.<\/p>\n\n\n\n

This market reaction reflects investors\u2019 growing awareness of a shifting AI landscape. DeepSeek\u2019s success has upended assumptions that only large-scale investments and resource-heavy approaches can produce cutting-edge AI advancements.<\/p>\n\n\n\n

But in the middle of all this turmoil, some companies\u2014notably application vendors like SAP\u2014have remained steady. The markets know where the real value lies: not in the models themselves, but in how they are applied.<\/p>\n\n\n\n

\"\"
AI models are becoming commodities\u2014the REAL value is what you DO with them!<\/em><\/figcaption><\/figure>\n\n\n\n

The Value of Application, Not Models<\/h3>\n\n\n\n

DeepSeek\u2019s rise is a reminder that while AI models are essential, their transformative potential depends on practical implementation. Application vendors like SAP understand this. Our focus<\/a> is on embedding AI into solutions that address real-world problems, streamline processes, and deliver measurable business outcomes\u2014with an open, flexible approach to which underlying models are used<\/a> with SAP Business Technology Platorm<\/a>. The lesson is: to avoid the market volatility impacting pure technology players, focus on customer-centric approaches.<\/p>\n\n\n\n

SAP\u2019s steady valuation suggests that enterprises value solutions over raw technology. AI models, no matter how advanced, are only tools (see AI is like Electricity<\/a>). Their true worth emerges when they are integrated into workflows, enhance decision-making, or unlock efficiencies. Companies like SAP have demonstrated that the endgame isn\u2019t owning the flashiest model, but rather delivering results that matter to customers.<\/p>\n\n\n\n

Lessons for the Industry<\/h3>\n\n\n\n

The DeepSeek story might not be good for tech investors, but it’s great news for most businesses, showing that we can all use AI to do much more with much less than anybody realized.<\/p>\n\n\n\n

But while breakthroughs in AI are exciting, success ultimately hinges on operationalizing these technologies. Vendors that can harness AI to solve specific problems will continue to thrive, regardless of shifts in the competitive landscape. Meanwhile, the companies focusing solely on the arms race of model development may face diminishing returns if they fail to connect their innovations to practical applications.<\/p>\n\n\n\n

In the end, DeepSeek\u2019s emergence isn\u2019t just a challenge\u2014it\u2019s an opportunity. By focusing on application and execution, companies can ensure they\u2019re delivering the kind of value that no stock market fluctuation can erode.<\/p>\n","protected":false},"excerpt":{"rendered":"

DeepSeek’s rise is shaking up global markets, but companies like SAP remain unfazed. What’s the secret? Discover why the real power of AI isn’t in the models themselves, but in how they they are applied!<\/p>\n","protected":false},"author":2,"featured_media":22436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[14],"tags":[1177],"class_list":["post-22435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thoughts","tag-ai"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/timoelliott.com\/blog\/wp-content\/uploads\/2025\/01\/ai-models-for-sale.jpg?fit=1530%2C860&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p3X9RF-5PR","_links":{"self":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/22435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/comments?post=22435"}],"version-history":[{"count":1,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/22435\/revisions"}],"predecessor-version":[{"id":22437,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/posts\/22435\/revisions\/22437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/media\/22436"}],"wp:attachment":[{"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/media?parent=22435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/categories?post=22435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timoelliott.com\/blog\/wp-json\/wp\/v2\/tags?post=22435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}