According to Databricks CEO Ali Ghodsi, monetizing open source requires two consecutive successes. First, the open source project must achieve global adoption. Second, you must build a proprietary, 10x better product on top of it to create a defensible business.

The creation of OpenFold was driven by former academics in industry who missed the collaborative models of academia. They saw that replicating DeepMind's restricted AlphaFold tool individually was a massive waste of resources and sought to re-establish a shared, open-source approach for foundational technologies.

OpenFold's strategy isn't just to provide a free tool. By releasing its training code and data, it enables companies to create specialized versions by privately fine-tuning the model on their own proprietary data. This allows firms to maintain a competitive edge while leveraging a shared, open foundation.

The partnership where OpenAI becomes an equity holder in Thrive Holdings suggests a new go-to-market model. Instead of tech firms pushing general AI 'outside-in,' this 'inside-out' approach embeds AI development within established industry operators to build, test, and improve domain-specific models with real-world feedback loops.

A key business advantage of open source is its irrevocable license. This allows companies to invest in building infrastructure around a tool like OpenFold without the risk of a commercial vendor changing terms, shutting down, or being acquired, thus preventing vendor lock-in and ensuring long-term stability.

Vercel's CTO Malte Ubl outlines a third way for open source monetization beyond support (Red Hat) or open-core models. Vercel creates truly open libraries to grow the entire ecosystem. They find that as the overall "pie" grows, their relative slice remains constant, leading to absolute revenue growth.

Fears that universal tools reduce differentiation are misplaced. Instead of just leveling the playing field, open tools like OpenFold raise the entire industry's baseline capability. This shifts competition away from who builds the best foundational model to who can ask the most insightful scientific questions.

Convex built 'Chef', a functional AI coding app, not to win end-users, but as a marketing tool. By open-sourcing it and demonstrating the power of their backend, they successfully attracted other AI coding platforms to build on their technology, turning potential competitors into customers.

The key to Red Hat's commercial open-source business is providing value the community doesn't. While open-source communities focus on rapid innovation, enterprises require long-term (e.g., 10-year) support and stability for the software they deploy—a paid service that Red Hat provides.