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What Eric Schmidt and Google Reveal About the Open Source Paradox: Community vs. Profitability

Dus
1 min readAug 21, 2024

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Photo from Fortune

Former Google CEO Eric Schmidt recently faced criticism for his remarks, but I do agree with him on one point: Open-sourcing AI models isn’t profitable — it’s more like charity work.

While many people dislike Mark Zuckerberg, Meta is actually a company that heavily invests in open-source projects. On the other hand, OpenAI is ironically not very “open.”

This makes sense. Open-source development can indeed build communities and drive adoption, but the software’s development and maintenance still rely heavily on the core developers.

That’s why it’s challenging to turn an open-source project into a tech giant. More often than not, we see companies that have already become giants supporting open-source initiatives.

Since open-source software can’t generate revenue directly through sales, companies usually have to monetize in other ways — like WordPress’s hosting services or Red Hat’s certifications and courses.

In the end, while open source can expand social influence and foster communities, it’s a different story when it comes to profitability.

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