The valuation of AI companies is under scrutiny as the belief that frontier model creators have built unassailable competitive advantages is challenged. Open source AI is gaining traction, with smaller companies adopting it more readily than larger ones. Surveys indicate that a significant majority of organisations plan to increase their use of open source AI technologies. This shift is driven by several factors, including cost savings, accelerated innovation, and the ability to shape industry standards.
Open source AI is making inroads in specific sectors like manufacturing and healthcare, providing flexibility and customisation. It's also fostering innovation and entrepreneurship by encouraging collaboration and offering tools for creating regionally appropriate AI models. Governments are also seeking open source alternatives to reduce the concentration of power in a few AI companies and promote accessibility.
Open source AI is viewed as a strategic tool, enabling rapid prototyping, cost optimisation and access to broader developer communities. While risks related to security exist, many companies are opting for hybrid systems that combine open source and proprietary elements. The rise of open source AI democratises access to advanced AI technologies, fostering economic growth and reshaping how businesses operate.
