×
Why this VC believes we won’t have one AI model that rules them all
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Venture capital veteran Jay Zhao, currently a managing partner at Leonis Capital, discusses DeepSeek’s disruptive entry into the AI landscape and explains why the future of artificial intelligence may not be a winner-take-all scenario.

Market perspective: Venture capital insights suggest that increasingly complex AI models will operate alongside simpler ones in a diverse artificial intelligence ecosystem.

Key industry developments: The emergence of Deepseek as a significant player in the AI landscape signals growing competition in the large language model space.

  • Deepseek’s entry into the market demonstrates there is room for new players to compete with established AI companies
  • Complex, power-intensive AI models serve different use cases than their lighter counterparts, creating distinct market segments

Technical considerations: More sophisticated AI models, despite their higher power consumption and complexity, fulfill specific needs that justify their existence in the market.

  • Power-hungry AI models excel at complex tasks requiring deep analysis and sophisticated reasoning
  • Simpler, more efficient models remain valuable for straightforward applications and resource-constrained environments
  • The coexistence of various model types reflects the diverse requirements of different AI applications

Market dynamics: The AI landscape is evolving to accommodate multiple players and technologies rather than moving toward a winner-takes-all scenario.

  • Different AI models serve distinct market segments and use cases
  • Competition in the AI space is driving innovation across the spectrum of model complexity
  • Market demand supports the parallel development of both resource-intensive and lightweight AI solutions

Investor’s outlook: Looking ahead to 2024 and beyond, the AI market appears positioned for continued diversification rather than consolidation around a single approach or provider.

  • The entrance of new players like Deepseek validates the market’s ability to support multiple competitors
  • Investment opportunities exist across the spectrum of AI model complexity
  • Market maturation suggests sustained demand for both sophisticated and streamlined AI solutions
More complex, power-consuming AI models will still 'coexist', 'co-evolve' with other models: Strategist

Recent News

Large Language Poor Role Model: Lawyer dismissed for using ChatGPT’s false citations

A recent law graduate faces career consequences after submitting ChatGPT-generated fictional legal precedents, highlighting professional risks in AI adoption without proper verification.

Meta taps atomic energy for AI in Big Tech nuclear trend

Tech companies are turning to nuclear power plants as reliable carbon-free energy sources to meet the enormous electricity demands of their AI operations.

AI applications weirdly missing from today’s tech landscape

Despite AI's rapid advancement, developers have largely defaulted to chatbot interfaces, overlooking opportunities for semantic search, real-time fact checking, and AI-assisted debate tools that could transform how we interact with information.