Open models close gap, shifting advantage to vertical deployment and data

demian_ai · x · 2026-08-21

As open-source models close the gap with frontier models, the competitive advantage is shifting from who has the best model to who can best execute workloads. Using Harvey as an example, taking a strong OSS base like K3 and post-training it on specific data allows for high-performance, low-cost vertical models. The real moat now lies in controlling data, serving, optimization, and the entire vertical stack.

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