alt Hacker NewsWhat's Google's business case for releasing open models? Don't get me wrong, I am grateful and appreciative of these releases. I'm trying to understand how it fits into their bigger picture as a for profit company? Are they not helping competitors build on the novel technology they have developed?
Is it simply goodwill and/or marketing? Or am I missing something strategic?
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A big part of the frontier labs abilities to charge 80% gross margins on inference is having the cornered resource of frontier models.
If that inference becomes popular and valuable enough that those companies make billions of dollars in profit, those companies could use that profit to fund the building of alternative products and platforms that dis-intermediate google's relationship with the customer.
Google already has an 80% gross margin business, the biggest one in the world. Everybody wants a slice of it.
By offering frontier inference closer to cost and open-sourcing everything that's sub-frontier, they're commoditizing frontier labs' models, which inhibits their ability to durably make high gross margins on inference.
It's a strategic play.
Android and Chrome need on-device AI capabilities. Google can't lock down those weights like it can with server-side ML.
So it's easier to just release those models as open source and make it official, since someone would inevitably hack the weights out anyway.
Google is one of the few verticalized options in AI: Data, models, cloud services, low-level silicon (TPUs), internal use cases, retail use cases, B2B uses, distribution (browser & mobile), etc.
They rise with the tide of AI adoption. But they gain ground if people opt into Google solutions. And any token sent to a Google model (free or paid) actively punishes their competitors that are then required to spend vast sums to remain bleeding edge.
Neutering OpenAI and Anthropic would be my guess. Commoditized LLMs won't hurt Google nearly as much as it hurts the LLM-only companies, and so accelerating the inevitable just helps knock out potential future competition in areas where Google -does- make a lot of money now.
If you're an AI lab, you definitely want research teams in this space - as this is where you can most easily iterate and make improvements which you'll then bake into larger, frontier models.
The question is: do you want to release your models, or use them purely for R&D?
Since everyone else is already releasing models of similar qualities, it's hard to say you're shooting yourself in the foot if you join the chorus.
The added cannibalization of releasing them is effectively zero, so the reputational benefits are likely to be worth it.
As long as Chinese firms are releasing good open models I imagine there isn't a huge downside for Google to release state of the art small models to compete in the "free" space.
It's to destroy possible footholds for competitors and prevent them from making money in segments that Google doesn't care too much about, but can trivially commoditize.
Google's MO since always has been to release great products or services for free, position themselves high and then abandon them or just find uses for Enterprise sales.
I'm pretty sure they are doing it because they get some research experience by shrinking and improving these models, and because they know that by doing this they get some good PR among the dev community.
Maybe they are hedging against a future where local models are just as good as cloud models? Or maybe they can go the Taalas route and start hardcoding Gemma on a chip and hardware manufacturers can use it for local private AI.
Isn't Apple about to license some variation of this from google for on-device AI? Maybe it’s their sales pitch to Apple and then they will lock it down.
On-device, e.g. Android.
They're trying to capture the segment of the market that wants to control the model, with the intent of getting you to run them on Vertex.
My guess is testing for Apple’s Siri replacement and partnership but that’s a total SWAG
Marketing + Pro Serv if I had to take a guess.
Evangelism for AI. Google is one of the big AI providers.
Eventually the local model is not enough, and you'll upgrade to the big ones.
edge compute
Gemma overtakes and kills real open-source AI projects, pushing people who would support them towards enterprises like Google
This won't replace commercially viable, revenue generating alternatives of their own devising, but it does enable development activity and initiate conversations with enterprises who start with this model but want to do slightly more.
That's my experience right now... my company is all in on a plethora of platform products. Also, Microsoft just yesterday said their goal was "Unmetered intelligence". There's a lot of things that can be enabled by small local models, and those things are part of stacks that can generate revenue in other layers.