Everyone is wrong about open source AI in the enterprise | Decagon
Jul 9, 2026

Summary
This post argues that the enterprise adoption of open-source AI models is driven by use case maturity, not just cost or customer demand. It explains Decagon's shift to ~90% open-source models due to the critical need for low-latency, fine-tuned models in production AI agent workloads like customer service. The post contrasts this with the broader enterprise trend of increasing spend on closed-source models, attributing it to the early stage of many new AI use cases. It posits that as use cases mature, the trend will reverse, with open-source models dominating production workloads.