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NEWS | LLM Wars

Flush with cash, OpenAI plans open-source release to court cost-conscious devs

by Cresta News Desk

published April 7, 2025

Credit: TechCrunch via WikiCommons (edited)

OpenAI is preparing to release a new open-source LLM in the coming months, marking a strategic pivot in response to mounting competition from major LLM providers and growing demand for transparency.

A door opens: The announcement represents a sharp shift in OpenAI’s approach, which has favored closed models since the release of GPT-2. The initiative is tied to moves to foster collaboration with developers, researchers, and the broader AI community to enhance the model's utility. OpenAI recently received a massive $40 billion capital infusion from SoftBank to front-run adoption in search of market share.

Sam speaks: CEO Sam Altman acknowledged the company's evolving stance on open-source strategies. In a recent Reddit Q&A, he expressed the need to "figure out a different open source strategy," recognizing that OpenAI has been "on the wrong side of history" regarding open sourcing its technologies. In a subsequent post on X, Altman said the upcoming model will possess reasoning capabilities similar to OpenAI's o3-mini.

Tackling the competition: By offering its own open model, OpenAI is positioning itself to reclaim developer mindshare and position itself more competitively against its competitors in the enterprise and edge AI space. Meta’s open-source Llama models and Mistral’s performant open LLMs have gained significant traction, enabling developers and enterprises to build tailored AI applications without relying on proprietary APIs.

Cozying up to developers: OpenAI recently began a feedback process through a form on its website, seeking insights on desired features and past experiences with open models. The company also intends to host developer events globally, starting in San Francisco, followed by sessions in Europe and the Asia-Pacific regions, aimed at gathering feedback and showcasing prototypes of the new model.

Key points
  • OpenAI plans to release a new open-source large language model, its first since GPT-2.

  • The move counters competition from Meta's Llama models and Mistral's open LLMs, enhancing its position in the AI space.

  • The company also open up new feedback channels and global events to better connect with devs.

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