Why Enterprises Still Hesitate on Open-Source AI

Releases from DeepSeek and Mistral rival Anthropic and OpenAI, yet businesses demand vendor-grade guarantees before deploying them
“Open source has been a huge advantage for business,” said Arthur Mensch, CEO of Mistral AI. “The idea of being able to deploy locally and wherever you want has changed the way we look at the technology”. That optimism is reflected in the pace of recent releases. For example, models like DeepSeek’s latest V3.1, delivering coding accuracy on par with proprietary rivals while being up to 68 × cheaper. This should be prompting a wave of enterprise uptake. Yet a Capgemini survey reveals that three-quarters of executives still favor closed AI systems, citing support, security, and integration concerns The reasons aren’t just about performance. “Companies love experimenting with open source models because there's no upfront cost and the performance is often impressive. But w
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Picture of Mukundan Sivaraj
Mukundan Sivaraj
Mukundan covers the AI startup ecosystem for AIM Media House. Reach out to him at mukundan.sivaraj@aimmediahouse.com.
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