Open models damage the business case of closed models by putting downward pressure on prices.
3 source(s) assert this claim, 2 deny it.
Who asserts it
- Jensen Huang on Open-Source AI — CES 2026, GTC 2026, LangChain Interview
jensen-huang-open-source-ai-2026 - DeepSeek's Liang Wenfeng Breaks His Silence
liang-wenfeng-transcript - How Chinese Open-Source Models Are Rewriting AI Economics — 5Y Capital's Xing Meng
xing-meng-chinese-open-source-models-silicon-valley-101-2026-08-18
I think the interesting observation I had is that despite the heated debate and also the great attention that has been placed on you know open source and K3 and and so forth uh if you're talking to Frontier Labs the researcher and so forth they haven't cared much about this few of them actually have tried uh those models and that was a surprise to me I thought this will be you know this is sort of your direct competition right and this is uh you know not just not only from a competition standpoint but also from a um sharing sort of p you know tech tech report and papers perspective.
So the total revenue if if it's flat in terms of total total cons consumption let's just say I don't know if it is but let's assume it is and total revenue will be going going down because people are swapping more expensive model with cheaper models in that way so uh there's large impact and the reason behind that is you know you're seeing the agent companies the the users the individual coders they are making that change as well and there's innovative ways to do that you might not swap it all the way you might be using um you know say the likes of K3 or Deepc to write your code and then still use cloud to review your code right use a combination of that to maintain certain accuracy and and performance along the way and well for most people it's you can hardly tell difference u from from that perspective unless you're very very intense users or or you are using it for for highly complicated problems in that way but then if you look back even among the uh Anthropic models uh between Fable 5, between uh Opus 5 and Opus 4.8, sometimes even Opus 4.6, people can't decide which one is better for their particular task.
the cheapest way but still cheaper obviously than than the other models of the same size and so forth.
Who denies it
- Jensen Huang: 'AI Doomers Have It Wrong' — Axios Interview Full Transcript
jensen-huang-axios-ai-doomers-2026-07-23 - DeepSeek's Liang Wenfeng Breaks His Silence
liang-wenfeng-transcript
So this Chinese competition is coming fast and furious. What should US AI companies do? these China Chinese models are excellent uh open open- source models that are excellent should be used and so the markets misunderstood the impact of deepseek the first time it's misunderstood Chinese >> yeah it's it's misunderstood the impact of Kimmy again this time I think first of all with great AI open models it's great for the whole industry obviously when there's more if there's great AI even if it's open uh wherever it comes from there will be more use.
We provide as much help as possible to the open source community, assisting everyone to deploy our models. I’m not worried they’ll steal this business from me, because this market is big enough. I’m only worried they can’t deploy it—that they got some details wrong, made the effect relatively poor, or that their cost is relatively high.
Free AI should be great for chips. Uh free AI should be great for uh data centers. So, I think I think the um uh the market just got it wrong. They got it wrong with Deepseek. As you recall, when Deep Seek came out, our stock price was down some 30%. And I think it's this is exactly the same thing. What this industry needs is great AI and the fact that Kimmy 3 is so extraordinary, QN is so extraordinary, um, uh, GLM so extraordinary, these Neimotron, Nvidia Neotron so extraordinary.
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