Firms Turn to Affordable Open-Source AI Models to Cut Costs, Says Amazon CTO
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| Source: Fortune on MSN | Original article
Companies turn to cheaper open-source AI models to cut costs. Firms seek to rein in AI spending amid rising bills.
Companies are increasingly turning to cheaper open-source AI models to curb rising costs, according to Amazon's CTO. This shift is driven by unpredictable costs resulting from AI firms adopting usage-based pricing, replacing flat subscriptions. The change is significant as it indicates a growing concern among executives about runaway AI bills.
As we previously reported, some users have expressed dissatisfaction with the latest models of popular AI tools, citing increased costs and decreased performance. This trend of shifting to open-source models is a response to soaring AI bills, with companies like Uber burning through their entire AI budget in a short span.
What to watch next is how this shift affects the development and adoption of open-source AI models. While open-source models may offer cost savings, a study suggests they can be more costly in the long run due to increased computing power requirements. Nevertheless, the trend towards open-source models is expected to continue, with companies exploring alternatives to expensive closed models for various tasks.
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