current
Open-Source vs. Closed LLMs
While big tech prioritizes closed flagship LLMs, open-source models dominate the smaller model landscape.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
Big tech companies like Microsoft, Google, and Amazon are prioritizing closed, proprietary flagship LLM models. However, they are also releasing lighter-weight open models, creating a dual approach. "Big tech's dominant approach is to prioritize closed flagship models while also releasing lighter-weight open models," the report explains. In the private market, closed LLM developers currently lead in equity funding, with companies like OpenAI and Anthropic attracting significant investment. However, open-source models are becoming increasingly competitive, particularly for smaller, task-specific applications.
Context Signals
Examples of big tech's closed and open LLM activities
Funding landscape for closed vs. open LLM developers
Convergence in performance between closed and open-source models
Edge
Enterprises will adopt a hybrid approach, using closed models for sophisticated tasks and open-source models for specific applications.
The open-source community will continue to drive innovation in LLMs, pushing the boundaries of performance and accessibility.
Specialized open-source models tailored to specific industries and use cases will emerge.
