DeepSeek & The Future of AI Models: Lessons from the Browser Wars

The trajectory of innovation in AI today reminds me of the early days of the web and the browser wars that shaped it. Back then, our ability to create and interact with the web was constrained by a single browser, limiting the fidelity of what we could produce. As competitors entered the scene, standards like HTML and CSS emerged, and the web expanded exponentially. Even with those standards, new innovations like JavaScript and Macromedia’s Flash unlocked possibilities we hadn’t imagined, breaking through the constraints of what we thought browsers could do.

AI is heading down a similar path.

The Parallel to Browsers

We’re currently in an era where innovation in AI models is being driven by a mix of proprietary players (like OpenAI and Anthropic) and open-source challengers (like Meta’s LLaMA and the newly released DeepSeek R1). Much like the browser wars, this competition is defining early standards and pushing the boundaries of what’s possible. Proprietary models bring alignment, safety, and polished performance, while open-source models democratize access and drive experimentation.

But even as we’re watching this battle for dominance unfold, I think the focus on which model “wins” is irrelevant in the long run. Just as browsers settled into a multi-platform world with innovation layered on top, I believe we’re heading for a multi-model AI ecosystem, where different models—both proprietary and open-source—work together in a modular, interoperable way.

A Multi-Model World

The future isn’t about one model dominating. It’s about how we combine and integrate different models to meet specific needs. Proprietary models will likely dominate in commercial, consumer-facing products where safety and alignment are non-negotiable. Open-source models, on the other hand, will thrive in research, niche applications, and cost-sensitive projects, pushing forward innovation in areas that proprietary players might overlook.

What’s important here is that this trend line isn’t just about scaling existing architectures or improving fidelity. It’s about creating new tools, systems, and even paradigms—like JavaScript and Flash did for browsers—that will fundamentally shift how we think about AI applications. I’m convinced we haven’t yet seen the step changes that will truly unlock AI’s potential. These will likely come from new players or hybrid innovations that combine dense, sparse, symbolic, and neural approaches into something we haven’t imagined yet.

Standards, Middleware, and the Rise of Hybrid AI

If we take lessons from the browser wars, we can see a few trends emerging:

1. Interoperability Will Drive Adoption: Just as the web couldn’t scale without standards like HTML5, the AI space will need standardized APIs, formats, and protocols to allow models to work together seamlessly. Companies don’t want to be locked into a single model—they’ll demand orchestration layers that let them mix and match tools based on need.

2. AI Middleware Will Be Key: As multi-model workflows become the norm, we’ll see the rise of platforms that act as a gateway for managing and combining models. Tools like LangChain or AutoML are just the beginning—these systems will evolve to abstract away the complexity of choosing and managing models.

3. Hybrid Architectures Will Take Over: Just as browsers now integrate multiple engines (like JavaScript and WebAssembly), AI models will likely become hybrid systems that combine the strengths of dense networks, sparse MoE architectures, and symbolic reasoning. These modular systems will be able to scale while still delivering task-specific performance.

4. Innovation Will Outpace Standards (For Now): Before interoperability catches up, we’ll live in a fragmented space where innovation moves faster than standardization. This means we’ll see exciting breakthroughs but also challenges in integrating them effectively.

Irrelevance of Individual Models

Looking at this trajectory, it’s clear that the individual models themselves are becoming less relevant. What will matter more is the ecosystem: how models are integrated, how they interoperate, and how they solve real-world problems together.

The browser wars ended with multiple players coexisting because the innovation became more important than the competition. The same will happen with AI. Whether it’s DeepSeek, Meta, OpenAI, Anthropic, or the next unknown player, the trend line points to a modular AI world where tools work together seamlessly—and innovation, not dominance, drives the future.

The big question isn’t “which model will win?” but rather, “how do we build the tools and systems to make them work together?”

SaaS companies are irrelevant with AI agents

I’ve heard a few folks joking (sometimes not-so-jokingly) about how the next wave of AI agents, combined with a simple database, could potentially wipe out the entire SaaS market. It’s a compelling vision: Imagine a single AI “super-tool” that knows your business inside and out, automates everything, and relegates your CRM, HR platform, and helpdesk software to the dustbin of history. Exciting, right?

But let’s talk reality for a moment. If you look at how technology has actually disrupted industries over the past couple of decades, it never really happens overnight. You don’t just flip a switch, dump all your existing systems, and pivot to a brand-new approach. Instead, it’s more like layering new capabilities on top of old ones, seeing what sticks, and slowly consolidating the tech stack over time. AI is absolutely going to transform the SaaS ecosystem, but “transform” doesn’t automatically mean “replace.” Let’s explore why.

As a technologist, I feel this coming. As a business person always surprised by the true pace of adoption, I know it’s a ways off.

Why SaaS Isn’t Going Away Anytime Soon—But How AI Agents Will Change the Game

The Slow Burn of Disruption

Adoption of cutting-edge tech usually starts at the edges, where the stakes aren’t as high. Think about when cloud-based software began replacing on-prem solutions. We didn’t see an immediate mass exodus. Companies tested the waters in non-critical areas first (like file sharing or team messaging), and only later migrated core systems. The same pattern will play out with AI agents.

Complexity and Compliance

On paper, “an AI + a database” sounds brilliant. But throw in industry-specific compliance, security protocols, and complex workflows, and you’ll realize how much engineering and domain expertise goes into even a “simple” HR or CRM platform.

The SaaS Value Prop Still Matters

Right now, top SaaS platforms offer more than just a place to store data. They’re infused with industry best practices and workflows that have been refined by thousands of customers over time. There’s a reason marketing automation tools or e-commerce solutions do specific tasks so well—the collective learning is baked in.

And then there’s compliance. If you run a business in healthcare, finance, or any highly regulated industry, your legal team needs robust evidence that a platform meets certification standards (HIPAA, SOC 2, GDPR, etc.). Trust me, “We used an AI that’s really cool” doesn’t cut it for an audit.

The Role of AI Agents

AI agents, particularly ones powered by large language models (LLMs), are already helping us automate tasks, generate insights, and connect data dots. However, in the near term, these agents will augment rather than completely replace your SaaS subscriptions.

The big challenge? Integration. Even the smartest AI can’t do much if it’s not talking to all your relevant data sources and apps in a secure, compliant way. And that integration layer—what I sometimes call “the plumbing”—is a huge part of SaaS value. AI might handle logic and recommendations, but the orchestration behind the scenes is massive. Even the MACH Alliance is finally starting to embrace the need for middleware.

Futures to Watch

  1. AI-Led Entrants: We’ll see new AI-powered platforms disrupt established players in specific niches—like specialized virtual assistants for customer support or data analytics that run circles around older solutions.
  2. Hybrid SaaS: Expect your favorite SaaS providers to fold AI features right into their core offerings. It’s already happening as they add GPT or other LLM-based functionality into their existing products.
  3. Specialized Micro-AI Services: Rather than one giant Skynet agent, we might see (and arguably already see) micro-AI components each tackling a narrow function—like invoice processing, lead scoring, or content generation—and snapping together like Lego blocks in your tech stack.

Timing Is Everything

When I first started evangelizing experience-driven commerce, which required headless commerce, I eagerly awaited all storefronts to change within a year or two. Back then I did not fully appreciating the cost of capital and the inertia to replace existing systems. With this in mind, I think the impact to SaaS will likely drag on for a decade.

  • Short-Term (1–3 Years): SaaS solutions get more AI smarts. Expect advanced natural language features, deeper automation, and chat-like interfaces on top of the same infrastructure you’re using now.
  • Mid-Term (3–7 Years): We start seeing the best-of-breed AI platforms truly rival (and sometimes replace) older, more rigid SaaS tools. If you’re running a simple or repetitive workflow, an AI agent might do it cheaper and faster.
  • Long-Term (7–10+ Years): By this point, many simplistic SaaS solutions may well be superseded by “AI + data” systems. But for mission-critical or highly regulated operations, specialized SaaS platforms—likely with strong AI capabilities of their own—will still be essential.

Final Word

As much as I love the sci-fi idea of a single AI brain running your entire business, we’re not quite there yet—and we won’t be for a while. The SaaS model still brings real value in terms of domain expertise, compliance, and that invisible but crucial layer of data plumbing. And, the reality is most business users just want to get to their kids softball practice and will drag their adoption feet.

That said, the future is definitely AI-powered. Over the next decade, expect a continuous blurring of lines between what we call “SaaS” and what we call “AI platforms.” In the end, though, the old question remains: who can deliver a product that solves real business problems, aligns with security and compliance needs, and fits into evolving workflows? AI is going to shake things up, but SaaS isn’t going away—it’ll just look a little (or a lot) different.

We’ll all keep an eye on those AI developments, that are just getting started.