Proprietary vs. Open-Weight vs. Open-Source: Decision Framework

~35 min read

How to choose between GPT-4/Claude (proprietary), LLaMA/Mistral (open-weight), and truly open-source models.

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Key points

  • Open-weight ≠ open-source: LLaMA 3.1 is open-weight with commercial restrictions; Apache/MIT is truly open-source
  • 1M tokens/day is the rough crossover where self-hosting becomes cheaper than proprietary API pricing
  • Data privacy requirements (HIPAA, GDPR, financial) often force the open-weight/self-hosted choice regardless of quality