Companies are turning to cheaper AI models because of the cost burden, Axios reported on May 29 local time.
The report said more companies are closely monitoring usage or switching to lower-cost models amid concerns that AI costs could surge.
Factory CEO Matan Greenberg said, "Many tasks don't even need Opus."
He added customers are "really afraid" of becoming dependent on a single vendor because they could face price increases in the future. Factory said open-source model usage over the past month has risen threefold compared with closed models such as OpenAI and Anthropic.
Micro1 CEO Ali Ansari said more companies are switching to open-source models or agents tailored to specific uses.