Open-source AI models are drawing interest from startups, enterprises and governments seeking lower costs, greater control and more flexibility. But as capable models become more widely available, questions remain over how companies can capture value and how Open AI providers can compete with Chinese developers.

On TechCrunch’s Equity podcast, host Rebecca Bellan spoke with Irene Solaiman, Hugging Face’s chief policy officer and senior vice president of strategy, about what startups should consider before building on open models. Their discussion covered model and infrastructure choices, as well as the trade-offs involved in adopting open AI.

Solaiman addressed when open models can help organisations reduce costs, and when using the most powerful models may be less appropriate. The conversation also explored how companies can build businesses around models that are free to use and whether the organisations developing them can retain value.

The episode also considered whether the United States may need well-funded companies such as Nvidia to develop an open frontier model capable of competing with Chinese models. It raised the question of what could be at stake if Chinese models become the global default, alongside the challenge of securing open AI platforms without shutting down the ecosystems around them.

Sources: TechCrunch Startups.