Ai Market

Open weights are quietly closing up - and that’s a problem

Open weights AI models are crucial for maintaining price competition against dominant frontier AI labs, preventing an oligopoly from extracting excessive consumer surplus by acting as a "generic" alternative. However, their availability is quietly eroding due to tightening license conditions and companies ceasing releases of new models. This trend threatens to consolidate market power among a few major players, leading to significant economic implications as they could capture the vast consumer surplus generated by AI.