1. AI, Open Source, and Davos 2025: The big discussion

The panel of AI experts at Davos 2025 featured Yan LeCun from Meta, Bill Dia from Google, and Neil Lawrence from Cambridge University, and explored how open-source AI models and frameworks are revolutionising industries by reducing costs, increasing transparency, and breaking down barriers to AI adoption.

The importance of the discussion was very publicly highlighted by the recent media storm around DeepSeek AI, a Chinese-developed chatbot that has stunned the tech industry by reportedly being built at a fraction of the cost of models like OpenAI’s ChatGPT.

DeepSeek AI’s rise has already had major consequences:

• It quickly became the most downloaded free app on Apple’s US App Store
• It triggered a $600 billion stock market loss, including a 17% drop in Nvidia’s market value
• It challenged the long-held belief that only well-funded tech giants can develop powerful AI models

At the heart of DeepSeek’s success is open-source AI, proving that AI development doesn’t have to be limited to a handful of powerful corporations. But what does that mean for businesses, and how can industries like real estate benefit?

2. What is Open-Source AI?

Before diving into its business implications, it’s important to understand what open-source AI means and why it’s so disruptive.

Open Source: more than just free software

• Open-source software (OSS) is software that is freely available for anyone to use, modify, and distribute. Instead of being locked behind proprietary paywalls, its code is transparent and collaborative.
• Well-known examples include Linux (operating systems), Python (programming language), and Joomla and WordPress (website development).

How Open-Source AI works

• AI models require massive computing resources, complex algorithms, and vast amounts of data. Open-source AI projects - such as Meta’s LLaMA, Google’s JAX, and the PyTorch framework—allow researchers and developers to build on existing AI tools without starting from scratch.
• DeepSeek AI reportedly leveraged existing open-source AI frameworks, dramatically lowering development costs while still achieving competitive performance.

The business case: cost and competitive advantages

For businesses, open-source AI significantly reduces costs by:

• Eliminating expensive licensing fees from proprietary AI providers
• Providing access to state-of-the-art models without high R&D costs
• Enabling in-house AI development without massive infrastructure investments

At Davos, Bill Dia (Google) noted that AI training and inference costs are two of the biggest barriers to entry for companies. DeepSeek AI’s success proves that open-source AI can slash these costs, making AI adoption far more feasible for businesses of all sizes.

3. What cheaper, Open-Source AI means for business

The DeepSeek AI story is a wake-up call for businesses worldwide—proving that powerful AI tools can be built without billion-dollar budgets.

Industry-wide implications

Cost-efficient AI adoption – Businesses no longer need to spend millions on proprietary AI models. Open-source alternatives allow smaller companies to experiment and integrate AI at a lower cost.

More customisation, more control – Companies using open-source AI can fine-tune models to suit their specific needs, rather than relying on pre-packaged AI services.

Global accessibility – Emerging markets and smaller businesses can now compete on a level playing field, accessing AI solutions that were previously only available to tech giants.

Neil Lawrence (Cambridge University) argued at Davos that Big Tech’s dominance in AI has stifled innovation in smaller businesses. Open-source AI breaks down these barriers, making AI-driven solutions accessible across industries.

4. The impact on real estate markets worldwide

The real estate sector has yet to fully embrace AI in its business processes, but open-source AI could be the game-changer the industry needs.

How Open-Source AI can transform real estate

AI-powered valuations & market predictions – Open-source AI models could analyse property trends, pricing history, and economic indicators to provide hyper-accurate property valuations and forecasts - at a fraction of the cost of proprietary tools.

Smarter investment decisions – AI can help identify undervalued properties, predict market downturns, and help real estate investors make data-driven decisions faster and more accurately. Open-source AI will make this more affordable.

AI-driven property search & recommendations – Open-source AI models could power affordable personalised real estate platforms, using machine learning to match buyers with properties based on lifestyle, affordability, and investment potential.

Automated legal & compliance processes – AI is already streamlining contract generation, legal documentation, and regulatory compliance, reducing administrative costs and improving efficiency, and with affordable Open-Source AI models, this will become more common.

Case Study: DeepSeek AI’s efficiency model

At Davos, Yan LeCun (Meta) highlighted how open-source AI is already transforming markets in regions like India, where researchers have fine-tuned LLaMA models to support local languages and industries.

DeepSeek AI has shown that affordable AI solutions are possible, making real estate automation and data-driven decision-making more accessible than ever before.

Final thoughts: the future of open-source AI in the business of real estate

The Davos 2025 panel discussion and the rise of DeepSeek AI prove one thing: open-source AI is no longer just a tech industry topic - it’s a fundamental shift in how businesses access and use AI.

For the real estate sector, open-source AI represents an opportunity to modernise, automate, and scale, without the financial burden of proprietary AI models.

Key takeaways:

• DeepSeek AI proves that powerful AI can be built at a fraction of the cost using open-source tools
• Companies can now fine-tune AI models to their specific needs rather than relying on expensive, one-size-fits-all solutions
• The real estate industry has huge opportunities to integrate AI into pricing models, property recommendations, and legal processes
• Emerging markets will benefit the most, as open-source AI removes barriers to adoption and enables cost-effective automation.

As businesses across the real estate industry adapt, one thing is clear: the companies that embrace open-source AI early will have a major competitive advantage in the AI-driven economy.

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