The Rise of Open Models in the Enterprise — Amir Haghighat, Baseten
Jul 24, 2025 · 16:50
Amir Haghighat, CTO of Baseten, argues that enterprises are increasingly moving from closed frontier models like OpenAI and Anthropic toward open source models, driven by four specific cracks in the assumption that closed models will work indefinitely: quality for specialized tasks (e.g., medical document extraction), latency requirements (especially for voice), unit economics ballooning from agentic use cases where a single user action triggers 50 inference calls, and the desire for competitive differentiation. Drawing on conversations with over 100 enterprises, he explains that while most started with dedicated deployments on Azure/AWS for toying around in 2023, by 2024 about 40-50 had production use cases, and in 2025 the shift accelerated. However, adopting open models forces enterprises to build inference infrastructure, facing challenges like speculative decoding, prefix caching, guaranteeing four-nines reliability with hardware failures and VLM crashes, and scaling replicas—with one Fortune 50 soft drink company reporting an eight-minute spin-up time. Haghighat concludes by contrasting the simple API-call world with the complexities of mission-critical inference, where…
