Open Models vs Closed Models: The $25B Question Explained by Frank Nagle, Linux Foundation
Most organizations are racing into AI — but many don’t realize they may be leaving tens of billions of dollars in unrealized value on the table. In this conversation, Frank Nagle, Chief Economist at The Linux Foundation, breaks down his new working paper and explains why open models could radically reshape the AI economy.
We talk about performance gaps, switching costs, misconceptions about data exposure, and the emerging economics behind open vs closed AI models. Frank also shares practical guidance for CIOs and CTOs on where open models fit into production workflows today.
Primary keywords: open models, AI economics, Linux Foundation
Secondary keywords: AI cost, LLM selection, enterprise AI strategy
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The Linux Foundation
The Linux Foundation is a nonprofit consortium dedicated to fostering the growth of Linux and collaborative software development. Founded in 2000, the organization sponsors the work of Linux creator Linus Torvalds and promotes, protects and advances the L...