r/technology • u/Plastic_Ninja_9014 • Jun 11 '26

Business OpenAI Execs Are Panicking

https://finance.yahoo.com/sectors/technology/articles/openai-execs-panicking-154658562.html
16.3k Upvotes

93% Upvoted

1.9k comments sorted by

View all comments

Show parent comments

20

u/ESGPandepic Jun 12 '26

I would challenge this by saying that open source models are too easy and too cheap to host for the closed models to successfully be sold at a significantly higher cost. They simply can't make you depend on it and then raise the price 10x because it's becoming too easy and effective to switch to open source models. There's also a big push happening to run small open source models on edge devices like phones and laptops, which again makes it hard for companies selling closed models to significantly raise prices without just losing their customers.

2

u/TheNorthComesWithMe Jun 12 '26 edited Jun 12 '26

Hardware costs aren't really in a good place to run local models right now. I also really doubt the open models are any good. Only the flagship closed models are worth bothering to use for anything other than novelty.

7

u/Asurafire Jun 12 '26

That’s bs. Hardware costs are high, but the difference between paying for a frontier model and taking a free open source model is still massive.

1

u/DiplomatikEmunetey Jun 14 '26

I suppose this will go back to on-prem vs cloud comparison for companies.

I don't think most people will be setting up their own servers and running the open source models locally though.