Morgan Stanley: Rise of Open-Source AI Models Will Accelerate AI Adoption by Lowering Costs

August 4th - Morgan Stanley stated that the rise of open-weight AI models such as Kimi K3, Qwen, and Llama will accelerate the adoption of AI by reducing costs, rather than weakening the competitive advantage of industry leaders.

The bank believes that lower-cost AI will drive wider enterprise adoption of AI technology and cites the "Jevons Paradox" as the basis, which suggests that technological efficiency improvements will actually lead to greater overall demand.

Morgan Stanley expects that open-weight models and closed-source models will coexist in the long term, with 63% of enterprises currently using both types of models. Furthermore, the bank points out that regardless of which AI model architecture ultimately dominates, NVIDIA will be the biggest beneficiary as the market's demand for AI computing infrastructure is expected to continue growing.