In this post
Source: AI Commercial Open Source Software (AICOSS), a short Request for Startups video from Y Combinator, published 31 Jan 2025. “AICOSS” is Y Combinator’s own label in that video’s title, not an established industry term. This post summarizes it. The “we” below is Y Combinator, not JetThoughts.
Y Combinator says that just as Red Hat and Gitlab (a YC W15 company) built public companies around open source projects, it is looking for companies built around open source AI models like DeepSeek and Llama. Its argument: businesses need support and services to use these AI tools.
The Open Source AI Opportunity #
Y Combinator wants to fund enterprise open source AI. Its examples of how this played out before: first the world had proprietary Unix, then Linux, then Red Hat. First BitKeeper, then Git, then GitHub and GitLab.
YC thinks there is a huge opportunity to build startups that offer support and services that help people use open source AI. It also says the organizations that release open source code often do not want to focus on commercial support. Its example: Google and Facebook open source a number of tools, but do not seem excited about providing commercial support for all businesses that want to use them. That leaves room for startups.
Why Open Source AI? #
YC says there will be many winners in open source AI. With the launch of DeepSeek, there is new ground for a founder to cover, helping businesses make use of these systems. If you are building open source AI for the enterprise, YC says it wants to hear from you.
Key Takeaways #
- Big Chance: YC sees a big opportunity for startups in open source AI.
- Support Needed: YC says businesses need support and services to use open source AI.
- New Models: YC says DeepSeek’s launch opens new ground for founders.
- Enterprise Focus: YC wants to hear from founders building open source AI for the enterprise.
