Hugging Face CEO Clem Delangue stated that large companies are moving away from the rented AI model. Instead of paying for every API call to external providers, they are choosing open-source models to run internally. Hugging Face is now used by about half of the Fortune 500. This is an important signal for Italian SMEs as well.
However, this phenomenon isn't just about big corporations. In fact, the same logic applies to mid-market companies that want data control, cost predictability, and vendor independence. Therefore, choosing between proprietary APIs and on-premise open-source models becomes a strategic decision, not just a technical one. Specifically, it involves data governance, budgets, and internal skills.
We at SHM Studio we are keeping a close eye on this transition. Consequently, we help clients navigate the available options, figuring out which AI approach makes the most sense for the medium term. Lastly, this piece breaks down the key stats, operational impacts, and questions every marketing or digital leader should be asking right now.
The context: Hugging Face as a thermometer for the AI market
Over the past few years, Hugging Face has become the go-to global hub for anyone building and rolling out open-source AI models. Comparing it to GitHub is spot on. Just like GitHub brought code sharing together in one place, Hugging Face has done the exact same thing for models, datasets, and machine learning pipelines.
According to what CEO Clem Delangue stated in a recent interview on TechCrunch , about half of the Fortune 500 now uses the platform. This data is significant. It shows that open source AI adoption is no longer a niche or experimental choice.
So, the market is sending a clear message: established organizations prefer to keep their models under their own control. Unlike what we saw just a few years back, today the model
Related articles
Discover more articles exploring similar topics, selected to offer you a more complete and stimulating perspective. Each piece of content is carefully chosen to enrich your experience.