AI Economics: Open Source vs Commercial AI — The Strategic Economics of Build Freedom

The choice between open source and commercial AI solutions represents one of the most consequential economic decisions enterprise leaders face today. This paper provides a comprehensive economic analysis of both approaches, drawing from 14 years of enterprise software experience and dozens of AI implementations. Through detailed TCO modeling across five-year horizons, case study analysis, and quantitative comparison frameworks, this research demonstrates that the optimal choice depends on organizational AI maturity, use case complexity, and strategic positioning.