Dear CEO: The end of the AI rental economy
If you rely on third party models, you are leaving your most valuable IP in a black box.
Renting intelligence is a race to the bottom for your margins and your data.
Microsoft and Meta are already seeing the limits of the subscription model.
Meta saw their Claude Code user count drop from 60,000 to 30,000 as they prioritized their own internal tools.
Meanwhile, MetaCode has surpassed 30,000 users by using models the company actually owns.
An enterprise needs a model that learns from proprietary workflows rather than one that merely boasts a high benchmark score.
It must protect your secrets from third party vendors.
The intelligence is yours.
At Alidade, we have spent the last two and a half years running open weights models specifically to automate our own work, protect client IP, and ensure we understand every nuance of this technology.
Your may worry that your own stack requires too much specialized talent.
This is true for a pilot, but it is a mistake for a core capability.
When you expand, the cost of licensing an external model will dwarf the cost of managing your own infrastructure.
The cost is high.
It is inevitable.
#AIStrategy #SovereignAI #DataGovernance