Why Fortune 500 Companies Are Quietly Switching to Open Models

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Today’s show:
Companies are spending $1 million on AI in a single month, but can’t always point directly to any resulting revenue. Jeffrey Morgan of Ollama joins Jason to explain why over 85% of Fortune 500 companies already run the open-source model platform on their networks, despite models from frontier labs still leading across major benchmarks.
Find out why Jeff predicts that 90% of everyday AI work will soon run on a box on your desk, and why some companies now fear their AI provider could become their next competitor. Is AI alive? Jeff doesn’t think so. But that doesn’t mean there’s nothing to worry about.

Guests:
Jeffrey Morgan on X: x.com/jmorgan
Ollama: ollama.com

Relevant Links:
Ollama, the easiest way to run open models locally and in the cloud → ollama.com
Kimi K3 from Moonshot AI, the trillion-plus parameter open model Jeff mentioned → huggingface.co/moonshotai/Kimi-K3
Reflection AI, the US open model lab Jeff is excited about → reflection.ai
NVIDIA and Microsoft bring RTX Spark and DGX Station for Windows to the desktop (NVIDIA) → blogs.nvidia.com/blog/local-ai-rtx-spark-micro…
Introducing System One models and Jev, the decision model Jeff and Jason discuss (TypeSafe) → typesafe.ai/blog/introducing-system-one-models…
Introducing Clef, Cloudflare’s open-source decision models (Cloudflare) → blog.cloudflare.com/clef-decision-models
Satya Nadella’s essay on why companies need to own their AI learning loop (X) → x.com/satyanadella/status/2066182223213293753
Introducing Omnigent, the Databricks meta-harness Jeff mentions → databricks.com/blog/introducing-omnigent-meta-…
GLM-5.3 and the spread of advanced cyber capabilities (Anthropic) → anthropic.com/research/glm-5-3-and-the-spread-…
The Hugging Face incident and the road ahead (OpenAI) → openai.com/index/hugging-face-incident-and-the…

Timestamps:
0:43 PayPal - Pay zero processing fees on your first $100K in eligible PayPal payment volume. Learn more at paypal.launch.co
3:11 Why enterprises are getting token shock
4:23 Can you trust the frontier labs with your data
7:06 Why companies want to own their AI stack
8:56 How close are open models to the frontier?
11:57 Running real AI work on your own desk
15:14 The Goldilocks zone and unmetered AI
25:12 Decision models that replace code
29:32 Who makes money when everything gets commoditized
33:19 Why every enterprise is building its own router
35:56 Can you depend on the frontier labs
42:37 Sentient being or powerful software
43:57 Open models, security, and the Hugging Face hack

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