AI Models Simplified: Open, Partly Open, and Closed
Not all AI models are built the same—and knowing the differences matters for your business. Think of AI models like cars. An open-source model gives you the keys, the engine, and the instruction manual. You can modify, improve, and use it however you like—total freedom. An example is Mistral 7B, which anyone can download and customize freely. A partly open (open-weight) model, like Meta’s LLaMA 2, hands you the keys but comes with some rules: you can drive it, but there are limits on modifications, especially if you're a large corporation. Finally, a closed (restricted-weight) model—such as OpenAI’s GPT-4—is like renting a luxury car: it’s powerful, but you never truly own it, and the company keeps its inner workings secret.
Why should businesses care? It comes down to control and security. Imagine you're a real estate company handling sensitive client data—homebuyers' financial details, property records, and private communications. With open or partly open AI, you run the model on your own servers, keeping all that sensitive data secure and confidential. It’s perfect for regulated industries like finance, healthcare, and real estate that can’t risk sharing data externally. Plus, it often costs less in the long run—no hidden fees for each question asked. Closed models like GPT-4 or Claude, however, operate in someone else’s cloud. It’s easy to use but requires trusting a third party with your data, introducing ongoing costs and less flexibility.
Which model is right for you? If you handle sensitive information and need maximum control, open-source or open-weight AI like Mistral or LLaMA 2 is likely your best bet. If speed and simplicity matter more, and you’re comfortable trading some control for ease, closed models like GPT-4 could be a better fit. The good news? Open models are quickly catching up in performance, meaning businesses now have great options without sacrificing security or control.
Sources: OpenAI; Meta AI; Anthropic; IBM; LinkedIn Pulse; Shout Digital; Mistral AI; Dell Technologies.