The Business of Open Source

In this episode of The Business of Open Source, I talked with Yann Lechelle, Executive President of :Probabl.

Perhaps the most interesting part of the conversation was about whether or not there is a risk from generative AI being trained on open source code, then generating new open source code and then re-training itself on that code. Yann says that there is already enough code in the world to give AI enough source material to work with, at least when it comes to ‘traditional’ code. So while perhaps there are issues with types of code that really require creativity, in most contexts we don’t need any more human-written code. 

Does this mean the value of code is dropping to zero? That’s what Yann things… but for open source companies with permissive licenses, the value of code was already zero. This means that what really matters is community and brand. 

What do you think? Do you think generative AI makes the value of code close to zero, and puts all software companies in the same boat as open source projects with permissive licenses? If you have an interesting take, let me know.
And if you want someone to help you focus your positioning and streamline your product and marketing strategy, reach out.

In this episode of The Business of Open Source, I spoke with Manik Surtani, one of the co-founders of the Agentic AI Foundation and the CTO at the foundation. This is part of the series I’m working on about open source and AI, which started last week with a conversation with Glauber Costa about how AI killed a bug bounty program. 

Manik talks about how the foundation came into existence, why it’s important to have a foundation that’s specific to agentic AI and what it means, in terms of everyday activities, to be the CTO of an open source foundation. 

Given how fast everything is moving in the AI space, and specifically around what open source actually means, how we define what is and is not open source, where we can get data and who is able to have data that is open enough to be considered open source. 

And if we want to mitigate the environmental impact of AI, is the solution really to insist on fewer cat videos? 

However, if you like this show and want more content about the intersection of open source, AI and bottom lines, you should consider sponsoring! Reach out if you’re interested.

The Business of Open Source is back! I’m starting a series about AI and open source this week. 

I reached out to Glauber Costa, founder of Turso, after reading a post of his on LinkedIn about how bot-written PRs for their bug bounty program forced them to discontinue the program completely. In this episode, he talked about the bug bounty program — how it started, who contributed to it initially, why he considered it a huge success. And then he talks about what started happening when bots entered the picture. 

He also talked about the difference between an open source project that accepts contributions and one that doesn’t, about the difference between an open source project and software that’s in the public domain, and how people in open source used to be seen as weirdos who hate money. 

Glauber isn’t an AI hater — he talks about how they use AI at Turso, and how he has no problem with AI-assisted pull requests. The issue is when the result isn’t high-quality. There's also a difference between AI-assisted and 100% bot written. Then it creates essentially a denial of service attack on the community, because the maintainers end up having to spend so much time responding to bot-created PRs. 

What’s your experience with AI and Open Source? Who else should I talk to? Let me know. 

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There’s a new episode of The Business of Open Source today! It’s been a while. 

I talked with Anais Concepcion about a program she’s been testing at Grist to give free activation codes for the enterprise version of Grist to individuals and small businesses that have a revenue under $1 million. The program has been in place for 5 months, and Anais came on the show to talk about both the strategy behind the program as well as some preliminary results. 

The strategy comes down to shifting the perception of Grist Open Source and Grist Enterprise. The goal, Anais says, is to make the ecosystem consider Grist Enterprise the ‘default’ version of Grist, rather than the other way around. In fact, she’s considering renaming Grist Enterprise to just “Grist” to reinforce the idea that it is not the ‘special’ version of Grist, but the default version. 

There were other strategic goals, too. One is to get more feedback on the ‘enterprise’ features, another is to avoid nickel-and-diming individual users while making sure that big companies are paying. 

The results so far have been interesting. The biggest concrete result has been in partnership relationships; it’s easier for small consulting / development shops to get access to the full Grist and to then resell it to their clients. There haven’t been been any signed deals yet as a result of this dynamic, but there are companies in discussions with the Grist sales team that probably wouldn’t have happened without the program… it will be interesting to see what happens as the program matures. 

After we turned off the recording, we had an interesting discussion about pricing as well; at Open Source Founders Summit Anais is going to do a workshop on pricing strategy. Not how much to charge, but what to charge for (consumption, seats, etc), how to set pricing anchors, and more. Join us in May if that’s interesting to you!

This week on The Business of Open Source, I spoke with Tom Hacohen, CEO and founder at Svix. We kicked off the conversation by talking about why Svix is an open core company… but Tom still initially didn’t think he’d be a good guest for the podcast. Unlike a lot of open source companies, Svix doesn’t make open source a huge part of its identity. Yes, there are business reasons for being an open source company, but the open source nature of the company isn’t plastered all over every piece of marketing material. 

So why does it matter? 

Developers prefer open source, and they’ll always choose the open source option if there is one. On the other hand, developers don’t often have buying power (and don’t even know how to buy software even if they did). But developers can influence buying decisions, and that can be important. 
We also talked about how there are different constraints that the open source project and the cloud version operate under. For example, ease of deployment doesn’t matter in the cloud version, because it doesn’t impact user experience at all. But the opposite is the case for the open source project, and that leads to different technical decisions. 
We talked about the problem getting information about people who use the open source project, because it is hard to get developers to talk. This is a puzzle that Tom says he still hasn’t cracked. 
Being an open source / open core company is a distraction, and it can be hard to manage externally and internally. 
We talked a lot about trust — how open source helps you earn trust, but you still need to earn and keep the trust. 

Want to talk more about the ins and outs of running open source businesses, and how open source companies win? Come to Open Source Founders Summit next May in Paris. And if you’re struggling to figure out how to monetize your open source company, you might want to work with me.