Market Chatter: OpenAI, Anthropic Costs Drive Some Firms to Open-Weight AI

MT Newswires Live01:33

Microsoft (MSFT)-backed OpenAI and Amazon (AMZN)-backed Anthropic risk losing revenue as rising AI costs drive more companies toward open-weight AI to create custom models with their own data, Bloomberg reported Monday.

Investors such as Sequoia Capital and General Catalyst are supporting the trend, which provides enterprises a cheaper alternative to the higher-cost models from OpenAI and Anthropic, while giving them more control over their technology, according to the report.

Anthropic and OpenAI have more recently released lower-cost models to ease concerns about AI costs, but both now charge enterprises for their model usage on top of base subscription fees, Bloomberg said.

OpenAI and Anthropic did not immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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