{"id":3138,"date":"2026-07-10T14:12:45","date_gmt":"2026-07-10T14:12:45","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=3138"},"modified":"2026-07-10T14:12:45","modified_gmt":"2026-07-10T14:12:45","slug":"companies-are-shifting-toward-cheaper-open-source-ai-models-to-rein-in-costs-amazon-cto-says","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=3138","title":{"rendered":"Companies are shifting toward cheaper open\u2011source AI models to rein in costs, Amazon CTO says"},"content":{"rendered":"<div>\n<p>\u201cWe see a shift happening between the cheaper open source models and the bigger expensive models,\u201d Vogels said in an interview on the sidelines of the UN\u2019s AI for Good summit.\u00a0<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=3136\">Stitch Fix\u2019s CEO inherited a broken tech darling. He\u2019s fixing it like a traditional retail exec<\/a><\/p>\n<p>Stories of runaway AI bills have been making some executives skittish about building systems on the most advanced models from companies such as OpenAI, Anthropic, and Google DeepMind, that bill by the token. (A token is the basic unit of data an AI model processes, equivalent to about a word and a half of English language text.) Uber said it burned through its entire 2026 AI budget in four months, while company reportedly burned through half a billion dollars in a single month after failing to cap AI usage for employees have caused concern across industries.\u00a0<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>Fears of runaway spending are forcing companies to rethink how\u2014and where\u2014they deploy the most powerful frontier models. While large models from companies like OpenAI, Anthropic, and Google often deliver top-tier performance, they also come with significantly higher operating costs, particularly when deployed at scale. Open source models (also sometimes referred to as \u201copen weight\u201d models) can usually be downloaded for free but then users have to pay for their own cloud computing infrastructure on which to run the models. Still, this often works out to be cheaper than using the most advanced proprietary models.<\/p>\n<p>\u201cCost is a very important part of your architecture, you need to take that into account,\u201d Vogels said. \u201cDo you really need to have the biggest, highest\u2011end model to solve this? The answer is no, you don\u2019t.\u201d<\/p>\n<p>The shift also reflects a broader maturation in how companies are thinking about AI adoption. After an initial wave of experimentation fueled by hype and rapid advances in large language models, many organizations are now entering a more pragmatic phase focused on return on investment. That means scrutinizing not just what AI can do, but what it costs to deploy and maintain over time.<\/p>\n<p>While customers may be shifting toward open\u2011source models as a cheaper option, Vogels also said companies were also putting a premium on transparency and trust in how models are trained and deployed<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=3134\">Why companies are paying a premium for battle-tested CFOs\u2014and Nike\u2019s struggling turnaround shows what that costs<\/a><\/p>\n<div>\n<div><\/div>\n<\/div>\n<p>\u201cTransparency becomes extremely important,\u201d he said. \u201cPeople want to know what is the data that goes into it.\u201d<\/p>\n<p>That demand is particularly acute in sectors like healthcare, government, and humanitarian work, where understanding how an AI system was trained\u2014and how it makes decisions\u2014can be as important as its performance. \u201cIf these people serve vulnerable communities. If they don\u2019t trust the system, they won\u2019t use it,\u201d Vogels said.<\/p>\n<p>Open-source models, which allow developers to inspect and modify code and more easily fine tune the model on their own data, are often seen as better aligned with those needs. But even most open weight model providers do not fully reveal all of the data on which the model was initially trained.<\/p>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>At the Summit, Vogels also launched a new Amazon open-source AI tool designed to help researchers find relevant scientific datasets quickly. <\/p>\n<div>\n<div><\/div>\n<\/div>\n<p>The system connects the AWS Registry of Open Data\u2014home to more than 1,100 datasets from organizations including NASA, NOAA, and the NIH\u2014to AI assistants, allowing users to search using natural language rather than navigating complex data catalogs. <\/p>\n<div>\n<div><\/div>\n<\/div>\n<div>\n<div><\/div>\n<\/div>\n<p>By enabling queries such as requests for satellite imagery or genomics datasets with specific licensing, the tool aims to replace processes that would have previously taken hours, lowering technical barriers for scientists, particularly those at under-resourced institutions, and accelerating research across fields such as climate science and public health.<\/p>\n<p>Read more <a href=\"https:\/\/crosscountrymovingteams.com\/?p=3132\">The Raising Cane\u2019s co-CEO has seen those World Cup fans praising the chicken and sauce. He\u2019s \u2018pretty grateful\u2019 to have \u2018chicken fanatics\u2019 worldwide<\/a><\/p>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stories of runaway AI bills have been making some executives skittish about AI spending, Amazon CTO Werner Vogels says.<\/p>\n","protected":false},"author":1,"featured_media":3137,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[338],"tags":[],"class_list":["post-3138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Companies are shifting toward cheaper open\u2011source AI models to rein in costs, Amazon CTO says - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=3138\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Companies are shifting toward cheaper open\u2011source AI models to rein in costs, Amazon CTO says - 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