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Open vs. closed models: AI leaders from GM, Zoom and IBM weigh trade-offs for enterprise use

by Investor News Today
July 10, 2025
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Deciding on AI fashions is as a lot of a technical determination and it’s a strategic one. However selecting open, closed or hybrid fashions all have trade-offs.

Whereas talking at this yr’s VB Rework, mannequin structure specialists from Normal Motors, Zoom and IBM mentioned how their corporations and clients take into account AI mannequin choice.

Barak Turovsky, who in March grew to become GM’s first chief AI officer, mentioned there’s a variety of noise with each new mannequin launch and each time the leaderboard modifications. Lengthy earlier than leaderboards had been a mainstream debate, Turovsky helped launch the primary massive language mannequin (LLM) and recalled the methods open-sourcing AI mannequin weights and coaching information led to main breakthroughs.

“That was frankly most likely one of many largest breakthroughs that helped OpenAI and others to begin launching,” Turovsky mentioned. “So it’s truly a humorous anecdote: Open-source truly helped create one thing that went closed and now perhaps is again to being open.”

Elements for choices range and embrace value, efficiency, belief and security. Turovsky mentioned enterprises generally choose a blended technique — utilizing an open mannequin for inside use and a closed mannequin for manufacturing and buyer going through or vice versa. 

>>See all our Rework 2025 protection right here<<

IBM’s AI technique

Armand Ruiz, IBM’s VP of AI platform, mentioned IBM initially began its platform with its personal LLMs, however then realized that wouldn’t be sufficient — particularly as extra highly effective fashions arrived in the marketplace. The corporate then expanded to supply integrations with platforms like Hugging Face so clients might decide any open-source mannequin. (The corporate lately debuted a brand new mannequin gateway that provides enterprises an API for switching between LLMs.) 

Extra enterprises are selecting to purchase extra fashions from a number of distributors. When Andreessen Horowitz surveyed 100 CIOs, 37% of respondents mentioned they had been utilizing 5 or extra fashions. Final yr, solely 29% had been utilizing the identical quantity.

Selection is vital, however generally an excessive amount of alternative creates confusion, mentioned Ruiz. To assist clients with their method, IBM doesn’t fear an excessive amount of about which LLM they’re utilizing in the course of the proof of idea or pilot part; the primary aim is feasibility. Solely later they start to take a look at whether or not to distill a mannequin or customise one primarily based on a buyer’s wants.

“First we attempt to simplify all that evaluation paralysis with all these choices and give attention to the use case,” Ruiz mentioned. “Then we work out what’s the greatest path for manufacturing.”

How Zoom approaches AI

Zoom’s clients can select between two configurations for its AI Companion, mentioned Zoom CTO Xuedong Huang. One includes federating the corporate’s personal LLM with different bigger basis fashions. One other configuration permits clients involved about utilizing too many fashions to make use of simply Zoom’s mannequin. (The corporate additionally lately partnered with Google Cloud to undertake an agent-to-agent protocol for AI Companion for enterprise workflows.)

The corporate made its personal small language mannequin (SLM) with out utilizing buyer information, Huang mentioned. At 2 billion parameters, the LLM is definitely very small, however it will probably nonetheless outperform different industry-specific fashions. The SLM works greatest on complicated duties when working alongside a bigger mannequin. 

“That is actually the facility of a hybrid method,” Huang mentioned. “Our philosophy may be very easy. Our firm is main the way in which very very like Mickey Mouse and the elephant dancing collectively. The small mannequin will carry out a really particular process. We’re not saying a small mannequin shall be ok…The Mickey Mouse and elephant shall be working collectively as one workforce.”

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