During my keynote at CES (Jan. 8), I spoke about DeepSeekV3 and how it was trained. We had been testing it for a week or so, and it seemed extraordinary. Then, on January 20, DeepSeek-R1 launched, and it only took a couple of days to realize the game had changed. I explained what was going to happen in my Sunday essay, then simply reported on what some are calling our "AI Sputnik Moment" yesterday.
Why the history lesson? Because everyone should have known this was coming. To be very clear, it's going to keep happening. We are living on the exponential. The cost ratio of OpenAI to DeepSeek is a pretty clear example of what an exponential shift in cost looks like.
Here are some questions to consider. Beyond reacting to Wall Street's "DeepSeek moment," how will you take proactive steps to ensure your organization is prepared for the next exponential leap? Have you reached out to your AI vendors to discuss their roadmap for integrating models like DeepSeek-R1 or to explore cost-saving opportunities with localized deployments? Are you evaluating which of your workflows could benefit most from lightweight, on-premise AI models or even lighter-weight mobile-friendly models? Have you convened your leadership team to assess whether your organization’s infrastructure and processes are agile enough to keep pace with rapid advancements? Are you actively fostering a culture of continuous adaptability? What specific actions will you take today to position your organization for what comes next? Food for thought.
As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s
P.S. Did you miss CES 2025? There’s still time to experience the best innovations in AI, IoT, XR, digital health, and more with a live, interactive online briefing. Tailored to your strategic goals, these briefings provide actionable insights and explore how cutting-edge technology is transforming consumer behavior. Don’t miss the chance to share the "Best of CES" with your team. Book your live virtual tour today.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
