I've been going on and on about this in HN: Open source can win this fight, but I think OSS is overconfident. We need to be clear there are serious challenges ahead - ClosedAI and other corporations also have a plan, a plan that has good chances unless properly countered:
A) Embed OpenAI (etc.) API everywhere. Make embedding easy and trivial. First to gain a small API/install moat (user/dev: 'why install OSS model when OpenAI is already available with an OS API?'). If it's easy to use OpenAI but not open source they have an advantage. Second to gain brand. But more importantly:
B) Gain a technical moat by having a permanent data advantage using the existing install base (see above). Retune constantly to keep it.
C) Combine with existing propriety data stores to increase local data advantage (e.g. easy access for all your Office 365/GSuite documents, while OSS gets the scary permission prompts).
D) Combine with existing propriety moats to mutually reinforce.
E) Use selective copyright enforcement to increase data advantage.
F) Lobby legislators for limits that make competition (open or closed source) way harder.
TL;DR: OSS is probably catching up on algorithms. When it comes to good data and good integrations OSS is far behind and not yet catching up. It's been argued that OpenAI's entire performance advantage is due to having better data alone, and they intend to keep that advantage.
A) Embed OpenAI (etc.) API everywhere. Make embedding easy and trivial. First to gain a small API/install moat (user/dev: 'why install OSS model when OpenAI is already available with an OS API?'). If it's easy to use OpenAI but not open source they have an advantage. Second to gain brand. But more importantly:
B) Gain a technical moat by having a permanent data advantage using the existing install base (see above). Retune constantly to keep it.
C) Combine with existing propriety data stores to increase local data advantage (e.g. easy access for all your Office 365/GSuite documents, while OSS gets the scary permission prompts).
D) Combine with existing propriety moats to mutually reinforce.
E) Use selective copyright enforcement to increase data advantage.
F) Lobby legislators for limits that make competition (open or closed source) way harder.
TL;DR: OSS is probably catching up on algorithms. When it comes to good data and good integrations OSS is far behind and not yet catching up. It's been argued that OpenAI's entire performance advantage is due to having better data alone, and they intend to keep that advantage.