Open-source AI models close the gap with frontier labs at fraction of cost

Anthropic and OpenAI's latest models maintain only a four-month lead over open alternatives like Meta's Llama while commanding five times the price. Enterprises now face a genuine technical arbitrage: paying premium prices for closed models no longer guarantees proportional performance gains. This acceleration in democratized AI is forcing a reckoning with vendor lock-in economics. The competitive advantage is shifting from model weights to domain-specific training, deployment infrastructure, and integration ecosystems.