Corporate America Shifts to Cheaper Open-Source AI Models
· Technology · New York Times, Indian Express
Companies including AT&T are increasingly adopting free, open-source artificial intelligence models instead of paying for premium systems from OpenAI and Anthropic, a New York Times report said. The shift is driven by cost: open-source models can be downloaded, customised, and run on a company's own infrastructure for a fraction of what proprietary AI services charge. AT&T is among the firms using these models for tasks such as customer service and internal operations. Analysts cited in the report said the trend could pressure pricing at OpenAI and Anthropic, both of which have raised billions in funding on the expectation of high-margin enterprise contracts. The open-source approach also gives companies more control over their data, a key concern for industries bound by privacy and compliance rules.
Why it matters
If large enterprises migrate workloads to free models, OpenAI and Anthropic face a direct hit to their enterprise revenue, while companies cut AI spending and gain tighter control over sensitive data. The shift could also reshape the competitive map between paid AI labs and community-driven projects.
Read the original report — New York Times
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