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Open vs. closed fashions: AI leaders from GM, Zoom and IBM weigh trade-offs for enterprise use
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Open vs. closed fashions: AI leaders from GM, Zoom and IBM weigh trade-offs for enterprise use

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Last updated: July 10, 2025 3:33 am
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Published: July 10, 2025
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Deciding on AI fashions is as a lot of a technical resolution and it’s a strategic one. However selecting open, closed or hybrid fashions all have trade-offs.

Whereas talking at this 12 months’s VB Rework, mannequin structure consultants from Normal Motors, Zoom and IBM mentioned how their corporations and prospects think about AI mannequin choice.

Barak Turovsky, who in March grew to become GM’s first chief AI officer, mentioned there’s numerous noise with each new mannequin launch and each time the leaderboard modifications. Lengthy earlier than leaderboards had been a mainstream debate, Turovsky helped launch the primary giant language mannequin (LLM) and recalled the methods open-sourcing AI mannequin weights and coaching knowledge led to main breakthroughs.

“That was frankly in all probability one of many largest breakthroughs that helped OpenAI and others to start out launching,” Turovsky mentioned. “So it’s really a humorous anecdote: Open-source really helped create one thing that went closed and now possibly is again to being open.”

Elements for choices differ and embrace value, efficiency, belief and security. Turovsky mentioned enterprises typically desire a blended technique — utilizing an open mannequin for inside use and a closed mannequin for manufacturing and buyer dealing with or vice versa. 

>>See all our Rework 2025 protection right here<<

IBM’s AI technique

Armand Ruiz, IBM’s VP of AI platform, mentioned IBM initially began its platform with its personal LLMs, however then realized that wouldn’t be sufficient — particularly as extra highly effective fashions arrived in the marketplace. The corporate then expanded to supply integrations with platforms like Hugging Face so prospects may decide any open-source mannequin. (The corporate just lately debuted a brand new mannequin gateway that offers enterprises an API for switching between LLMs.) 

Extra enterprises are selecting to purchase extra fashions from a number of distributors. When Andreessen Horowitz surveyed 100 CIOs, 37% of respondents mentioned they had been utilizing 5 or extra fashions. Final 12 months, solely 29% had been utilizing the identical quantity.

Selection is essential, however typically an excessive amount of alternative creates confusion, mentioned Ruiz. To assist prospects with their method, IBM doesn’t fear an excessive amount of about which LLM they’re utilizing throughout the proof of idea or pilot section; the principle purpose is feasibility. Solely later they start to take a look at whether or not to distill a mannequin or customise one based mostly on a buyer’s wants.

“First we attempt to simplify all that evaluation paralysis with all these choices and deal with the use case,” Ruiz mentioned. “Then we work out what’s the greatest path for manufacturing.”

How Zoom approaches AI

Zoom’s prospects can select between two configurations for its AI Companion, mentioned Zoom CTO Xuedong Huang. One includes federating the corporate’s personal LLM with different bigger basis fashions. One other configuration permits prospects involved about utilizing too many fashions to make use of simply Zoom’s mannequin. (The corporate additionally just lately partnered with Google Cloud to undertake an agent-to-agent protocol for AI Companion for enterprise workflows.)

The corporate made its personal small language mannequin (SLM) with out utilizing buyer knowledge, Huang mentioned. At 2 billion parameters, the LLM is definitely very small, however it will possibly nonetheless outperform different industry-specific fashions. The SLM works greatest on complicated duties when working alongside a bigger mannequin. 

“That is actually the facility of a hybrid method,” Huang mentioned. “Our philosophy could be very simple. Our firm is main the way in which very very like Mickey Mouse and the elephant dancing collectively. The small mannequin will carry out a really particular job. We’re not saying a small mannequin shall be ok…The Mickey Mouse and elephant shall be working collectively as one workforce.”

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