In this post
This post summarizes “AI Commercial Open Source Software (AICOSS)”, a Y Combinator request-for-startups video published on the Y Combinator channel in January 2025. The video argues that open source AI such as DeepSeek leaves room for startups that sell support and services. The “Why Startups Should Care” section is our own commentary, not from the video.
Key Takeaways #
- Y Combinator compares open source AI to earlier open source waves: Linux, then Red Hat; Git, then GitHub and GitLab.
- There’s a gap in commercial support for open source AI tools.
- Startups can fill this gap by offering support and services.
- The video expects many winners in this space.
The Evolution of Technology #
The video lays out two earlier cases. First there was proprietary Unix, then Linux, then Red Hat. First there was BitKeeper, then Git, then GitHub and GitLab.
Its argument is that open source AI is at a similar point: with the launch of DeepSeek, there is new ground for a founder to cover helping businesses use these systems.
The Opportunity in Open Source AI #
Organizations that release open source code often don’t want to focus on commercial support. The video names Google and Facebook: they open source a number of tools but don’t seem excited about supporting every business that wants to use them. That leaves an opening for startups.
Startups can fill the gap with services such as:
- Support for businesses using open source AI (named in the video).
- Consulting to help companies integrate these tools (our suggestion).
- Training for teams using AI models (our suggestion).
Why Startups Should Care #
Our own view, not from the video:
- Demand: as more companies adopt AI, more of them will need support.
- Breadth: open source models can be used across industries.
- Community: the open source community offers resources and collaborators.
What Founders Can Do #
If you’re a founder interested in this space, here are some steps to consider:
- Research existing open source AI models and their applications.
- Identify specific industries that could benefit from these tools.
- Network with other entrepreneurs and tech enthusiasts to share ideas.
- Develop a business model that focuses on providing support and services.
Conclusion #
Y Combinator’s video ends with an invitation: if you’re building open source AI for the enterprise, they want to hear from you. Watch it above for the full pitch.
