Firms moving to open-source or Chinese models are not showing lower total AI spend: June data show the median model-serving user spent $248 per employee—a 21% month-over-month rise and roughly 23× the median AI-spending business—indicating these already high-spend firms are continuing to increase investment rather than reduce it.
The author challenges the assumption that firms adopt open-source or Chinese models mainly to cut costs, arguing task-level savings aren't reducing overall AI budgets.
Third, there is a common assumption that firms turn to open-source or Chinese models mainly to cut costs.
That may be true at the task level, but it is not showing up as lower overall AI spend.
In June, the median model-serving user spent $248 per employee on AI, up 21% from May and roughly 23 times the median AI-spending business.
These firms are already spending a lot on AI, and continuing to spend more, rather than turning down their spend.