Slash costs, boost growth with open-source AI

The Linux Foundation and Meta are putting some numbers behind how open-source AI (OSAI) is driving innovation and adoption.

The adoption of AI tools is pretty much everywhere now, with 94% of organisations surveyed already using them. And get this: within that crowd, 89% are tapping into open-source AI for some part of their tech backbone.

A paper released this week by Meta and the Linux Foundation stitches together academic brainpower, industry frontline stories, and global survey data to showcase an ecosystem that’s buzzing thanks to being open and affordable.

If there’s one thing that jumps off the page, it’s the money talk. Cost savings, folks, are a huge deal here. Unsurprisingly, two-thirds of businesses are saying that open source AI is just plain cheaper to get up and running compared to proprietary. So, it’s no shocker that almost half of them point to these savings as a big reason for going the open-source route.

We’re not talking about trimming a few coins here and there. Researchers reckon companies would be shelling out 3.5 times more cash if open-source software simply vanished. As AI digs its heels deeper into everything we do, the financial muscle of open-source is only going to get stronger, potentially even overshadowing traditional open-source software’s impact.

But this isn’t just about pinching pennies; it’s about unleashing brains. The report points out that AI can slash business unit costs by over 50%, which, as you can imagine, opens the door for revenue boosts. When open AI models are out there for cheap, or even free, it levels the playing field. Suddenly, developers and businesses of all sizes can jump in, play around, and rethink how they do things.

Often it’s the smaller players, the agile startups and medium-sized businesses, that are diving headfirst into open-source AI more so than the big corporate giants. And since these are often the places where groundbreaking ideas and new products are born, it really hammers home how vital OSAI is for keeping the innovation engine chugging and helping those plucky, cutting-edge firms compete.

And if you want a textbook example of how going open can turbocharge things, look no further than PyTorch. The report digs into how Meta’s decision to shift its heavyweight deep learning framework to an open governance model, under a non-profit, turned out to be a masterstroke.

The report leans on a close look by Yue and Nagle (2024), who tracked what happened next. Once PyTorch flew the Meta nest, contributions from Meta itself “significantly decreased.” Sounds a bit off, right? But actually, it signalled a healthy move away from one company calling the shots.

What really ramped up was input from “external companies, especially from the developers of complementary technology, such as chip manufacturers.” Meanwhile, the actual users, the developers building stuff with PyTorch, kept their engagement steady – “no change.”

It’s a clear win. As the researchers put it, this kind of shift for major OSAI software “promotes broader participation and increased contributions and decreases the dominance of any single company.” It’s a powerful testament to what report authors Anna Hermansen and Cailean Osborne found: “engagement in open, collaborative activities is a better indicator of innovation than patents.”

This isn’t just theory; it’s making waves in massive sectors. Take manufacturing. Open-source AI is set to be a game-changer there, mostly because its open code means you can bend it and shape it to fit. This flexibility allows AI to slot neatly into factory workflows, automating tasks and smoothing out order management. A 2023 McKinsey report, flagged in the study, even predicts AI could pump up to $290 billion extra into advanced manufacturing.

Then there’s healthcare. In places like hospitals and local clinics, where every penny and every minute counts, free and flexible tools like open-source AI can literally be lifesavers. Imagine AI helping with diagnoses or flagging diseases early.

McKinsey thinks the global healthcare sector could see up to a $260 billion boost in value once AI is really rolled out. A 2024 analysis even showed that open models in healthcare can go toe-to-toe with the proprietary ones—meaning hospitals can get tailored, privacy-friendly OSAI without skimping on performance.

And it’s not just about the tech; it’s about the people. The report mentions that AI-related skills could see wages jump by up to 20%. That’s a big deal and really underlines why we need to be thinking about training and development for this new AI era.

Hilary Carter, SVP of Research at The Linux Foundation, said: “The findings in this report make it clear: open-source AI is a catalyst for economic growth and opportunity. As adoption scales across sectors, we’re seeing measurable cost savings, increased productivity and rising demand for AI-related skills that can boost wages and career prospects.

“Open-source AI is not only transforming how businesses operate—it’s reshaping how people work.”

So, the takeaway? Open AI models are fast becoming the standard, the very foundation of future breakthroughs. They’re pushing growth and healthy competition by making powerful AI tools available without an eye-watering price tag.

The Linux Foundation’s report isn’t just cheerleading; it’s laying out the hard numbers to show why open-source AI is absolutely crucial for a robust, stable, and forward-looking economy.

See also: Alibaba Wan2.1-VACE: Open-source AI video tool for all

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