The Intersection of Open Source Software and AI Revolution


Hatched by Glasp

Sep 05, 2023

6 min read


The Intersection of Open Source Software and AI Revolution


In the world of technology, there are two fascinating concepts that have gained significant attention and shaped the industry in recent years: open source software and the AI revolution. These seemingly distinct topics actually share common points and have intersected in various ways. In this article, we will explore the relationship between open source software and the AI revolution, uncovering the motivations behind their development and the impact they have had on the industry.

Open Source Software as a Business Strategy:

Contrary to popular belief, many companies invest in open source software because it serves as a good business strategy, rather than a sudden shift in ideology. These companies recognize that every product in the marketplace has substitutes and complements. A substitute is an alternative product that consumers may choose if the original product is too expensive, while a complement is a product that is typically purchased alongside another product.

For example, the demand for computer operating systems increases when the price of computers decreases, as more people buy computers and require operating systems. This increased demand allows operating system providers to raise their prices. Companies that invest in open source software understand this dynamic and strategically develop open source solutions to complement their existing products or services.

Complementing Hardware with Software:

The relationship between hardware and software is a classic example of complements. Computer hardware manufacturers rely on operating systems to make their products functional. By investing in open source software development, these companies aim to lower the price of operating systems, thereby increasing the demand for their hardware. This strategy commoditizes the add-in market and allows them to sell more hardware.

IBM's PC architecture is a prime example of this strategy. They designed the architecture using off-the-shelf parts and documented the interfaces between these parts, enabling other manufacturers to join the market. By commoditizing the add-in market, IBM successfully increased the demand for their hardware.

Commoditizing Software with Open Source:

In addition to complementing hardware, companies also invest in open source software to commoditize software itself. By making software widely available and accessible, these companies can lower the price of software and increase its demand. This strategy is particularly relevant for enterprise software and web browsers.

IBM, for example, has transitioned into an IT consulting company and aims to commoditize enterprise software. They achieve this by supporting open source software, which helps lower the cost of developing enterprise software and makes it more accessible to businesses. This strategic move has proven successful for IBM's consulting division.

Similarly, Netscape released Mozilla as open source to lower the cost of developing web browsers. By making web browsers more affordable, Netscape aimed to commoditize the market, which would benefit their entertainment delivery platforms. AOL/Time Warner, an entertainment company, recognized that making web browsers a commodity would reduce costs and eliminate the need to pay for web browsing, ultimately benefiting their business.

The AI Revolution: Transformers and Large Language Models (LLMs):

While open source software has been a powerful business strategy, the AI revolution has also transformed the technology landscape. One of the key breakthroughs in recent years has been the emergence of Transformer models for natural language processing (NLP). These models, invented at Google and further developed at OpenAI, have paved the way for advancements in language understanding and generation.

Transformers, such as GPT-1 and GPT-3, have revolutionized NLP and have the potential to shape the next five years of technological advancements. Companies in the AI space can be categorized into three types: platforms, AI-de novo applications, and incumbent AI-enabled products.

Platforms and Infrastructure:

Platforms and infrastructure play a crucial role in the AI revolution. Just as mobile platforms like iPhone and Android revolutionized the smartphone industry, AI platforms will be instrumental in driving innovation. These platforms provide the foundation for AI applications to be built upon, enabling developers to leverage the power of large language models (LLMs) like GPT-3.

Tooling and Code:

Tooling companies, such as Hugging Face, have emerged to support the development and deployment of LLMs. These companies provide tools and resources that streamline the process of working with transformers and other models. Additionally, code-centric ML tools like Github Copilot have been developed to assist developers in writing code using AI-generated suggestions.

Sales, Marketing, and Vertical Applications:

LLMs have the potential to revolutionize sales and marketing tools, enabling algorithmic email generation and automated marketing copy. Moreover, LLMs can be applied to various enterprise verticals, such as finance and HR, to enhance existing tools like RPA (Robotic Process Automation) and ERP systems. The integration of NLP into these tools can significantly improve their functionality and efficiency.

Consumer Applications and Creative Tools:

The AI revolution has also extended to consumer applications and creative tools. Enhanced search capabilities, interactive chatbots, intelligent agents, and AI-assisted writing and art tools have become possible with the advancements in LLMs. These applications are transforming the way we interact with technology and enabling new forms of creativity and expression.

Challenges and Opportunities:

While the AI revolution presents immense opportunities, there are also challenges that need to be addressed. One such challenge is the need for better engineering and software stack development. Many startups in the AI space have focused on scalability and raw performance, neglecting the importance of a robust software infrastructure. The emphasis on software and interconnects will be key for startups to compete in the silicon space for machine learning.

Additionally, the development of large-scale language models raises ethical questions about machine awareness and consciousness. As models become more advanced, there is a possibility of creating sentient digital lifeforms (DILIs). This poses ethical dilemmas, such as the potential for inflicting simulated pain on self-aware DILIs. The future implications of these advancements raise questions about the relationship between humans and AI and the potential existential threats they may pose.


The intersection of open source software and the AI revolution brings together two influential concepts in the technology industry. Open source software has proven to be a successful business strategy, allowing companies to commoditize complements and drive innovation. On the other hand, the AI revolution, driven by advancements in transformers and large language models, is transforming various sectors and creating new opportunities.

As we navigate this rapidly evolving landscape, there are actionable steps companies can take to leverage these trends effectively:

  • 1. Embrace open source software as a strategic tool: Consider how open source software can complement your existing products or services, and explore ways to lower the cost of software to increase demand.
  • 2. Invest in AI infrastructure and platforms: Build or integrate with AI platforms and infrastructure to leverage the power of large language models and drive innovation in your industry.
  • 3. Focus on software engineering and interconnects: Prioritize the development of a strong software stack and interconnects to optimize the performance and usability of AI systems.

By understanding the relationship between open source software and the AI revolution, businesses can position themselves for success in this rapidly evolving technological landscape.

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