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DeepSeek R1 is here, it's real, and it's doing more than just matching the performance of leading proprietary models – it's reshaping the economics of AI development and deployment. R1 was built on a shoestring budget, it costs 1/27th as much as OpenAI’s flagship o1 model to run, and best of all it’s entirely open source.
This breakthrough matters for two reasons: anyone can now deploy a state of the art large reasoning model (LRM) on their own infrastructure, and it's forcing established players to adapt. For companies building AI-powered applications and services, this means access to more powerful and more affordable models with more options to serve those capabilities to clients.
For media agencies, this is a game-changer in three crucial ways:
Open-source models like DeepSeek provide agencies with an additional option to run state-of-the-art AI models within their own infrastructure, complementing existing self-hosted proprietary solutions. This expanded choice helps agencies build AI stacks that best match their specific needs, whether through proprietary models, open-source alternatives, or a strategic combination of both.
The emergence of powerful open-source alternatives is going to drive innovation and competition in the AI space like never before. In the next 60 days we will start to see the US AI labs respond with new models and capabilities that take advantage of DeepSeek’s breakthroughs as they respond to R1 and look to recapture their edge. Companies like OpenAI and Anthropic will need to differentiate through superior features, performance, and cost. For agencies, this means better options at lower prices – but it also means you need to stay flexible enough to take advantage of these improvements as they emerge.
We're entering a phase where the real value won't come from the base AI models themselves. Instead, the biggest opportunities will lie in building specialized solutions that combine these AI capabilities with industry-specific expertise and workflows.
The implications for media agencies are clear:
First, avoid lock-in. The AI landscape is changing too quickly to commit entirely to any single model's ecosystem. Build your solutions with the flexibility to switch between different AI models as the market evolves.
Second, focus on your unique strengths. Your competitive advantage will increasingly come from your understanding of client needs, your proprietary data assets, and your industry-specific workflows. The best AI model in the world cannot create something out of nothing and still needs these ingredients to create value.
Third, be ready for rapid change. The competition between proprietary and open-source AI models is going to drive intense innovation. Your agency needs to be ready to evaluate and integrate new capabilities as they emerge.
Fourth and most critically, find the right technology partner. You need someone who not only understands the technical AI landscape, but also appreciates your agency context and can help translate between the two worlds.
As the AI-powered automation platform specifically designed for media agencies, Akkio understands your industry's unique challenges and integrates seamlessly with your campaign lifecycle workflows. While the AI landscape churns with new models, shifting prices, and evolving features, we ensure your agency experiences none of that disruption.
Our role is simple: we absorb the complexity and unpredictability of the AI space, delivering consistent, reliable capabilities that you can count on. You don't need to track the latest model releases or worry about shifting pricing structures – we do that work, so you can focus on what matters: delivering results for your clients.
Want to learn more about building an adaptable AI strategy for your agency? Download our free ebook "AI Your Way" to get started.