The biggest news yesterday was Huang Xiaoming opening an X account and posting his first tweet. An open letter initiated by a16z, jointly signed by NVIDIA, Microsoft, PLTR, PerplexityAI, Ollama, and other tech companies, explicitly advocates that "cutting-edge open-source models and cutting-edge closed-source models should coexist and develop."

Among so many companies, who didn't sign? Of course, it's O and A.

There is a data point: the weekly token share of Chinese open-source models used by US enterprises is approaching 60%. With open-source models accounting for such a large proportion of token consumption in US enterprises, if they are banned or restricted, enterprise costs will surge dramatically.

We previously discussed two paths for AI competition: model expansion and platform expansion. Now, enterprise AI adoption has entered the engineering era, with AI adoption in the enterprise market increasingly shifting to scenario-specific application models:

1) High-value scenarios continue to use high-value tokens from cutting-edge closed-source large models;

2) In high-frequency, low-complexity task scenarios, enterprises are increasingly favoring high cost-performance tokens (mostly from open-source models).

This trend is inevitable:

- For chip manufacturers, whether using whose model, training and inference are required;

- For cloud providers, the more model choices offered to enterprise customers, the higher the gross margin;

- For deployment layers (such as PLTR) or application-oriented companies, there is naturally a stronger incentive to choose high cost-performance tokens.

The co-signing enterprises of this open letter basically fall into these three categories, so behind the open letter lies extremely strong commercial demands and huge commercial value. In other words, the attitude of O and A making money while alienating their customers is increasingly causing dissatisfaction among customers and the industry, and the competition is becoming increasingly fierce.

$NVIDIA(NVDA.US)$Microsoft(MSFT.US)$Palantir Tech(PLTR.US)