More companies are seeking cheaper AI amid cost pressures

Companies are tightening AI usage controls as costs surge, and many are shifting to cheaper open-source or task-specific models.

Factory and Micro1 say adoption of open-source models is rising, with more firms choosing models based on specific use cases.

The move helps cut AI spending, but it also increases reliance on lower-cost alternatives and the risk of vendor lock-in away from major closed models like OpenAI and Anthropic.