Who makes money from open-source AI models?
10 days ago
- #Monetization
- #Open-Source AI
- #Inference Providers
- Open-source AI models are monetized by inference providers, not the model creators.
- Three layers of the open-source AI models stack: Model Itself, Inference Provider, and Consumer Application.
- Inference providers differentiate based on speed, cost, reliability, and other performance metrics.
- Independent inference providers like Groq, Cerebras, and Chutes are growing in the market.
- Inference providers charge per-million tokens or offer flat-fee pricing models.
- Consumer applications like Kilo Code depend on the inference layer for performance.
- Choosing the right inference provider impacts speed, model power, and context window size.