Karpathy and Mistral founder Mensch start firing together:
Connecting to closed-source APIs is like feeding your own data for free to your competitors.
Back then, Amazon wanted to use merchants’ data to push its own retail business; Google looked at advertisers’ data to optimize itself—same play, reheated in the AI era.
Mensch’s proposal is:
Keep data in an open system: train it yourself, control it yourself, and save it yourself. If the vendor won’t grant full data access rights? Then migrate and run.
If this actually impacts the U.S. stock market: the shelf life of the closed-source AI premium will be shorter than the market expects.
MSFT’s Copilot pricing power, the cloud differentiation between GOOGL’s Gemini, ADBE/CRM’s AI add-on pricing—are all built on the premise of “closed models being non-substitutable.”
The day open source catches up to 90% performance, these premiums evaporate.
Long closed-source AI premium stocks—think META and cloud providers.
Whether to choose open source or closed source is a technical question for enterprises; a valuation question for the market.
#AI #Mistral #MSFT #GOOGL #meta