AI startups rush to build their own models to cut inference costs

nmasc_ · x · 2026-09-22

The top topic at Silicon Valley dinners lately: a serious rush among AI startups to build their own models, aiming to cut costs, reduce dependence on frontier model providers, and regain control — driven by the rise of cheap, effective open-source models.

Examples: Cursor was an early mover building its own models to manage the cost of routing to expensive frontier models; Moonshot is expanding its forward-deployed engineer program; and Harvey's margin pressure is part of the same story.

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