How startups and companies profit from free open source AI models

Open source AI models are increasingly used by enterprises, governments and startups seeking lower costs and greater control. But how do companies make money when models are freely available? On TechCrunch's Equity podcast, Irene Solaiman, Chief Policy Officer and SVP of Strategy at Hugging Face, discusses the economics of open AI and the trade-offs shaping the sector.

Key topics include licensing and revenue sharing models, the infrastructure decisions founders face when building on open models, and whether to buy or rent GPU compute. Solaiman also addresses competitive pressures, including the rise of Chinese open models, security concerns around model attacks, and how smaller startups can protect themselves.

The episode explores specialized models beyond language—including biology and other domains—and the case for maintaining American leadership in open AI development.