Why Businesses Are Skipping Open-Source Models

If there’s one thing artificial intelligence sellers learned in 2024, it’s that customers want AI to be a cinch to set up. Businesses are even willing to pay a premium and take their chances with AI models or chatbots like ChatGPT that have fewer built-in security features than they’re used to—as long as they just work out of the box.

That explains why OpenAI and Anthropic each grew revenue 500% or more last year despite a proliferation of free, open-source alternatives from Meta Platforms, Mistral AI and others.