Bloomberg Surveillance · Tuesday, September 15, 2026
Open-source AI models such as NVIDIA's Nemotron and Alibaba's Gwen are impacting the pricing and availability of frontier models. Ted Morrison explains that the reduced token costs of these open-source options significantly influence the long-term pricing strategy of major AI developers.
“You look at what NVIDIA has done with Nemotron in conjunction with Palantir, that combination is impacting the frontier models pricing and availability. If you look at some of these open source models, whether you're using Gwen from Alibaba or Nemotron from NVIDIA, or any of the open source models, those token costs go right through the floor. And to some degree, that influences, to a great degree, what the frontier model's pricing model looks long term.”
“So I would say it's a strategy to put open source in a box from a regulatory standpoint.”