OpenAI Dominates Generative AI Market, But Open-Source Challengers Gain Traction with Enterprises Seeking More Control and Customization
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Open-source AI models are booming, with lots of new models being released that rival OpenAI's GPT-4. However, OpenAI still dominates with 80-90% market share for enterprises adopting generative AI.
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OpenAI announced new features and partnerships to expand its offerings for corporate customers, claiming over 600,000 users of ChatGPT Enterprise.
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While cost is a factor, enterprises are attracted to open-source models for other reasons like control, security, understanding model outputs, and customization.
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As models improve, enterprises want to own the IP and fine-tune models on their own data for competitive advantage in their markets.
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OpenAI's upcoming GPT-5 could shake up the market, but easy swappability of models and new entrants mean enterprises will likely continue experimenting with both open and closed models.