Open Models Change The Economics of AI

Ollama (YC W21) is used by 9 million developers and 85% of the Fortune 500, giving co-founder and CEO Jeffrey Morgan a unique view into which AI models people are actually using and how that’s changing.Right now, the biggest shift he sees is toward open models, driven by coding agents, falling costs, and capabilities that are rapidly catching up to the frontier labs. On Ollama Cloud, that shift has driven a 150x increase in token usage since the start of the year.In this episode of the Lightcone, Jeff joins us to talk about the future of open models and the story behind Ollama, from two years of searching for the right idea to building one of the most widely used AI developer tools in the world.

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