Open Models Change The Economics of AI

Open Models Change The Economics of AI

Author: Y Combinator September 12, 2026 Duration: 57:15

Ollama (YC W21) is used by 9 million developers and 85% of the Fortune 500, giving co-founder and CEO Jeffrey Morgan a unique view into which AI models people are actually using and how that’s changing.Right now, the biggest shift he sees is toward open models, driven by coding agents, falling costs, and capabilities that are rapidly catching up to the frontier labs. On Ollama Cloud, that shift has driven a 150x increase in token usage since the start of the year.In this episode of the Lightcone, Jeff joins us to talk about the future of open models and the story behind Ollama, from two years of searching for the right idea to building one of the most widely used AI developer tools in the world.


Behind every successful startup is a story, and the Y Combinator Startup Podcast is where those stories are told in full. This isn't about polished theory; it's the raw, practical conversation happening between founders who have been in the trenches and the Y Combinator partners who advise them. You'll hear directly from people who have navigated the chaotic journey from a flicker of an idea to building a company that scales, discussing not just their victories but, more importantly, the hard lessons and tactical decisions that aren't found in any textbook. Each episode feels like a candid office-hours session, stripping away the hype to focus on the real work of making something people actually want. For anyone curious about the mechanics of building a technology company-the early uncertainties, the pivotal moments, and the relentless focus on execution-this podcast offers an unfiltered look at the craft. Tune in for genuine insights from the frontlines, where the focus remains squarely on the art and science of building things that matter.
Author: Language: en-us Episodes: 50

Y Combinator Startup Podcast
Podcast Episodes
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