> This seems very bad for their business.
Well, it is gonna be all _AI Companies_ very soon so unless everyone switches to local models which don't really have the same degree of profitability as a SaaS, its probably not going to kill a company to have less user privacy because tbh people are used to not having privacy these days on the internet.
It certainly will kill off the few companies/people trusting them with closed source code or security related stuff but you really should not outsource that anywhere.
Did an American court just destroy all American AI companies in favor of open weight Chinese models?
No, because users don't care about privacy all that much, and for corporate clients discovery is always a risk anyway.
See the whole LIBOR chat business.
afaik only OpenAI is enjoined in this
Correct, but lawsuits are gonna keep happening around AI, so it's really a matter of time.
> —after news organizations suing over copyright claims accused the AI company of destroying evidence.
Like, none of the AI companies are going to avoid copyright related lawsuits long term until things are settled law.
> afaik only OpenAI is enjoined in this
For now. This is going to devolve into either "openAI has to do this, so you do too" or "we shouldn't have to do this because nobody else does!" and my money is not on the latter outcome.
It's part of preserving evidence for an ongoing lawsuit. Unless other companies are party to the same suit, why would they have to?
Sure. But this means the rest of the AI companies are exposed to such risk; and there aren't that many of them (grok/gemini/anthropic).
> It certainly will kill off the few companies/people trusting them with closed source code or security related stuff but you really should not outsource that anywhere.
And how many companies have proprietary code hosted on Github?
None that I've worked for so I don't really track the statistics tbh.
We've always done self-hosted as old as things like gerrit and what not that aren't even really feature complete as competitors where I've worked.
You can fine tune models on a multitenant base model and it’s often more profitable.
>don't really have the same degree of profitability as a SaaS
They have a fair bit. Local models lets companies sell you a much more expensive bit of hardware. Once Apple gets their stuff together it could end up being a genius move to go all in on local after the others have repeated scandals of leaking user data.
Yes but it shifts all the value onto companies producing hardware and selling enterprise software to people who get locked into contracts. The market is significantly smaller # of companies and margins if they have to build value adds they won't charge for to move hardware.