Everyone is talking about DeepSeek. So, what does it mean for AdTech?
Well, we don’t know. Honestly, no one really does.
But let’s speculate.
First, to recap: DeepSeek is a China-based open-source large language model (LLM) startup founded in 2023. It has suddenly made waves after launching its DeepSeek R1 model, which is reported to rival—and in some cases outperform—AI from companies like OpenAI and Meta. What’s even more striking is it does so at a much lower cost and with a lot less compute. (That’s why NVIDIA’s stock took a hit today.)
Why This Matters:
So, what does this mean for adtech?
Here are a few possible outcomes to consider:
AI for All – DeepSeek’s low-cost, high-performing AI could shake up adtech. Smaller vendors and independent players, who’ve often been priced out of more advanced AI tools, might finally get access to the same level of tech that the big guys use. This could lead to a flood of innovation in things like bid optimization, DCO, contextual, and audience segmentation—making the whole space more competitive and diverse. That’s a good thing.
AI for Bad Actors, Too – If the AI slop problem seemed bad before (see DoubleVerify’s Synthetic Echo), it’s about to get worse. With a top-tier model now freely accessible, bad actors—ad fraud networks, MFA sites, and more—can scale their operations at a much lower cost. Fraud, fake app reviews, shell websites, and other malicious activities could proliferate, as barriers to entry drop dramatically.
Are Agencies Are in Trouble? – Agencies have been charging a premium for new AI services, often built on partnerships with companies like OpenAI. But now? A cheaper model is available. How do you justify high fees for services when a free option exists? DeepSeek is China-based which will likely scare large agencies away. They’ll also use it to justify what they have in place as “compliant” to brands. This opens a door for smaller, more agile players who understand the tech and can seize the opportunity to out-innovate. Look at Perplexity today, integrating R1 into their offering (with no ties to China)—that’s the blueprint for disruption.
Experts React:
The tweets have been tweeting:
Our Take:
DeepSeek is a game changer, period.
Actually, we’re going to download it locally to write all of our posts moving forward. We’re just kidding! (Maybe.)
