In a surprising turn of events, a new wave of open-source artificial intelligence models have emerged that are outperforming the industry-leading ChatGPT in key areas, potentially disrupting the small business technology landscape. What this really means is that small businesses now have access to powerful AI tools that can match or even exceed the capabilities of proprietary systems - all at a fraction of the cost.
The Rise of Open-Source AI
Leading the charge are models like OpenScholar, an open-source AI built by researchers at the University of Washington and the Allen Institute for AI. In head-to-head comparisons, OpenScholar outperformed ChatGPT and other major language models in scientific literature reviews, with users preferring its responses over those written by human PhD experts 51% of the time.
But OpenScholar is just the tip of the iceberg. Across domains like coding, math, and general reasoning, open-source models from DeepSeek, Llama, Qwen, and Gemma are also proving their mettle against proprietary giants. The bigger picture here is that the open-source AI movement has matured to the point where small businesses can now access frontier-level AI capabilities without the hefty price tag associated with platforms like OpenAI and Anthropic.
Implications for Small Businesses
This shift holds immense promise for small and medium-sized enterprises (SMEs) that have historically struggled to afford the latest AI tools. As Inc. reports, Anthropic's Claude model is currently the fastest-growing AI tool among Ramp's business customers, with one in five U.S. companies on the platform now using it. But the rise of open-source alternatives means SMEs have more cost-effective options to leverage transformative AI capabilities.
From automating repetitive tasks to powering intelligent chatbots and virtual assistants, these new open-source models could be game-changers for small businesses looking to punch above their weight. The launch of Zhipu AI's GLM-5, an open-weight model that claims to outperform all open-source rivals in reasoning, coding, and agentic tasks, is a prime example of the rapid progress in this space.
As small businesses navigate the turbulent waters of the post-pandemic economy, access to affordable, high-performing AI could be the difference-maker in driving innovation, enhancing customer experiences, and boosting overall competitiveness. The rise of open-source AI models that outshine ChatGPT is a trend that small business leaders would be wise to watch closely.