Why Global Businesses Are Switching to Custom ERP & CRM Software in 2026 | ThriveUp SolutionOpen-Source vs Proprietary LLMs: How to Decide

LLMs come in two broad families. Proprietary models are accessed through a provider’s service. Open-weight or open-source models can be downloaded and run on infrastructure you control. Each has trade-offs.

Proprietary (hosted) models

  • Pros: quick to start, no infrastructure to manage, strong general quality, regular improvements
  • Cons: usage-based costs, data leaves your environment, limited control over changes

Open-source or open-weight models

  • Pros: greater control, data can stay in your own environment, freedom to customise
  • Cons: you need hardware and technical skill, you manage updates and security, and licence terms differ between models

Questions to ask

  • Does regulation or a client contract require data to stay in a specific country or system?
  • Do you have the technical team to host and monitor a model?
  • Is your usage volume high and steady enough to justify your own infrastructure?
  • Is the licence suitable for commercial use?

A hybrid approach

Many businesses use a hosted model for general tasks and a self-hosted one for sensitive data. Designing a flexible architecture lets you mix both.

Not sure which fits? Contact us or read about our AI & Automation services.