June 15, 2025 A new Linux Foundation report reveals that 89% of organizations using artificial intelligence (AI) have adopted open source AI (OSAI) in some form. Two-thirds say it’s cheaper to deploy than proprietary tools, and nearly half adopt it specifically for cost savings. Smaller businesses are leading the charge, using open models to bypass costly licensing.

“The data is clear that smaller businesses are embracing OSAI at higher rates than larger enterprises, and for good reason,” said Matt White of the Linux Foundation. Open models, he explained, allow startups to “compete based on their unique applications rather than being blocked by access barriers.” Frank Nagle of Harvard Business School added that “the economic impact of OSAI is likely to be substantially larger than traditional OSS” as AI grows in influence.

The report found 94% of organizations have adopted some form of AI, and 41% of their AI infrastructure is open source. Nearly all developers have experimented with open models, and 76% of companies expect their use of OSAI to increase . Open source is especially prevalent in healthcare and manufacturing, where it enables local deployment without sacrificing performance.

Beyond lower costs, OSAI is credited with speeding up innovation through community collaboration. But the report also notes risks. In sectors like energy, companies may resist open models to protect proprietary advantages, potentially limiting adoption. There’s also concern that widespread AI uptake could increase energy consumption, adding pressure on infrastructure.

Still, the workforce impacts appear more complementary than disruptive: only 5% of hiring managers reported reducing headcount due to AI in the past year, while AI-related skills now command a 21% wage premium.

You can read the full report, The Economic and Workforce Impacts of Open Source AI :
https://www.linuxfoundation.org/research/