Kimi's Commercial Agreement Reportedly Involves 30% Revenue Share
Summary
Reports suggest that the commercial agreement for Kimi, likely an AI model, involves a 30% revenue share, indicating that "open" models are not necessarily "free" due to the significant hosting costs for large-scale AI. This implies a need for sophisticated commercial providers.
Why it matters
This insight is crucial for businesses considering deploying or integrating large AI models, as it clarifies that "open" does not mean "free" and that significant operational costs, often structured as revenue shares, must be factored into financial planning and strategic partnerships.
How to implement this in your domain
- 1Evaluate the total cost of ownership for deploying large AI models, including hosting and revenue share.
- 2Negotiate commercial agreements for AI model usage with a clear understanding of hidden costs.
- 3Assess the capabilities of potential commercial providers for hosting and managing large AI infrastructure.
- 4Develop a financial model that accounts for AI operational expenses and potential revenue splits.
- 5Educate procurement and legal teams on the nuances of "open" source vs. "free to use" in AI.
Who benefits
Key takeaways
- "Open" AI models are not necessarily free to operate.
- Hosting large AI models incurs significant costs.
- Commercial agreements may involve substantial revenue shares (e.g., 30%).
- Sophisticated commercial providers are often needed for deployment.
Original post by @martin_casado
"I keep hearing the commercial agreement for Kimi is 30% take. Given how hard it is to host a model of this size you’ll almost certainly need a sophisticated commercial provider. I totally understand Moonshot’s reasons for this. But clearly, open very much does not mean free. @tob…"
View on XOriginally posted by @martin_casado on X · view source
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