Why the rise of open source AI isn’t hurting Anthropic … yet
Decagon CEO Jesse Zhang argues that mature AI deployments are moving toward lighter models, with open source and frontier labs operating in the same life cycle, and that the overall spend on expensive frontier models remains stable. Platforms like Vercel show open source models like DeepSeek gaining traction, but frontier providers like Anthropic still dominate in terms of spending, despite rising prices. The two-tiered model of models may persist, with open source models capturing a significant share of the market while premium-priced frontier models maintain their positions.
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