Are Increasingly Competitive AI Markets Pushing Users To Open Source?

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Ronald Schmelzer is Managing Partner & Principal Analyst at AI Focused Research and Advisory firm Cognilytica (http://cognilytica.com), a leading analyst firm focused on application and use of artificial intelligence (AI) in both the public and private sectors.

AI, and in particular Generative AI, solutions are making their way into all types of products and services that we’re using increasingly on a daily basis. Those entities and organizations that hold the greatest market share in the models that are used as a basis for these daily apps, known as Foundation Models, will hold the keys to the kingdom in the fast-paced, gold rush mentality that is Generative AI.

Indeed, when organizations say they are using AI or building AI systems, most of the time they are making API calls to the cloud-hosted versions of the proprietary models. Sometimes, organizations are running models locally or on their own infrastructure, but the super-fast pace of AI iteration is motivating companies to take expedient measures to just use what’s available now. The need for local control or customization of models being pushed to later iterations or never.

. They're interested in scrutinizing the competitive dynamics of the rapidly emerging AI market to try to ensure innovation and fairness, and to gain a better understanding of the market trends and practices to see what might be anti competitive behavior. But there’s no need to wait for regulatory action that may not be forthcoming to decide your approach to making sure you have greater freedom of choice and control in the use and development of AI models.

The reason for the emergence of new models is because proprietary models in many ways are the AI version of vendor lock-in. Elon Musk notably sued Open AI for what he saw as a breach of their original promise of development of AI technology “in the open”, and very recently released his own Grok models as open source as a counterpoint to the proprietary models on the market.This has led to the growth and emergence of open source AI foundation models.

 

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