Sriram Krishnan on Open Source AI's Biggest Week Yet

Sriram Krishnan on Open Source AI's Biggest Week Yet – The a16z Show

Market views

Bullish

AIMODELS— Open source AI models are creating a diverse, competitive ecosystem with strong growth across the entire stack, from inference clouds to data centers, driven by value creation and capitalist incentives.
CLOUDGPU— Neo clouds and GPU infrastructure providers will capture economics as pricing pressure on frontier labs drives demand to alternative compute providers.
INFRA— The entire AI infrastructure stack (data centers, chip providers, power/cooling) will benefit as open source models drive value creation and demand across the supply chain.

Bearish

OPENAI— Frontier labs face pricing pressure and margin erosion as competitive open source models force token price reductions, with the moat potentially shifting from intelligence to product/harness layer.
ANTHROPIC— Anthropic faces competitive pressure from open source models like Kimi K3 that match capabilities without safety constraints, forcing model extensions and potential pricing/margin pressure.

Not investment advice.