IBM highlights benefits of open models for enterprises

During a recent Q3 earnings call, IBM's CEO Arvind Krishna emphasized that open weight models are now a highly attractive option for enterprises looking to implement artificial intelligence in their operations. Krishna compared the effectiveness of these models to closed models, noting that in 2024, closed models were clearly superior, but the gap was quickly narrowing.

Krishna mentioned that by 2025, the performance difference between closed and open models could shrink from a 70 to a 50, representing a significant advancement in the competitiveness of open models. This is particularly relevant for businesses seeking to maximize their return on investment in AI technology.

Additionally, the CEO highlighted that the costs of open models are remarkably lower, reaching between 10% and 25% of the frontier model costs. This cost-effectiveness makes the decision to opt for open models easier for enterprises, which can now achieve 90% of the performance of the best models at a fraction of the price.

## Why it matters The shift towards open models in the AI field means that more businesses will be able to access advanced technologies without making prohibitive investments. This could democratize AI usage and foster innovation in sectors that were previously limited by high costs.

## What we know IBM is committed to promoting open weight models, recognizing their increasing effectiveness and cost reduction. The company has indicated that this trend will solidify over the coming years, potentially changing how businesses implement AI solutions.

## What is still unclear It has not yet been confirmed how competition between open and closed models will develop in the coming years, nor what impact these changes will have on the broader AI market.