Open LLM Wave (2023) › The Problem

Michael BrenndoerferAugust 22, 20253 min read
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Part 8 of 9Open Models & Alignment
Chapter 90Open LLM Wave (2023) › The Problem
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By early 2023, despite the release of LLaMA, the language AI ecosystem faced significant barriers that limited widespread adoption and innovation. Proprietary models from OpenAI, Google, and Anthropic offered impressive capabilities but came with critical limitations: access was restricted through APIs with usage costs and rate limits, users had no visibility into model internals or training data, and customization options were limited to prompt engineering and fine-tuning through proprietary interfaces. These constraints made it difficult for researchers to conduct independent evaluations, for organizations to deploy models in privacy-sensitive environments, and for developers to build applications that required predictable costs or offline capabilities.

The closed nature of proprietary models also created concerns about dependency and lock-in. Organizations building applications on proprietary APIs faced risks of service disruptions, policy changes, or cost increases that could jeopardize their projects. The inability to inspect or modify model behavior created challenges for applications requiring specific safety guarantees, domain adaptation, or compliance with regulations governing AI deployment. Researchers interested in understanding how these models worked, improving their capabilities, or addressing their limitations found themselves working with black-box systems where the only interface was the API.

Additionally, the proprietary model ecosystem had created an environment where innovation was concentrated among a small number of large technology companies. Academic teams and startups without massive computational resources struggled to contribute to language model development. While transfer learning and fine-tuning techniques enabled some customization, the fundamental models themselves remained inaccessible, limiting the scope of research and development that could occur outside major tech companies.

The field also lacked competitive alternatives that matched proprietary model quality while offering open access. BLOOM, released in 2022, had demonstrated the feasibility of open large language models, but its performance lagged behind state-of-the-art proprietary systems, and its 176 billion parameter size made it difficult to deploy and use in practice. LLaMA had shown that efficient architectures could achieve competitive performance, but as a single model from a single organization, it represented only the beginning of what an open ecosystem could offer. The community needed a diverse ecosystem of open models from multiple organizations, each exploring different architectural choices, training approaches, and optimization strategies.

The absence of competitive open alternatives also limited the development of downstream tooling and infrastructure. With most developers focused on proprietary APIs, the ecosystem for model serving, optimization, quantization, and deployment tools was primarily oriented toward API-based workflows. This created a gap for organizations wanting to deploy models locally or customize them extensively, as the tooling ecosystem was less mature than that for proprietary APIs.