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Village study says closed-source models dominate the cost-effectiveness frontier

1 reports1 story updatesUpdated Oct 30 08:00

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Village released a study based on LLM Atlas, stating that closed-source models have now taken over the cost-effectiveness frontier. Statistics show that open-weight models are currently the optimal choice only within a 3% budget range, and are almost all concentrated at the lowest price points, occupied by Google Gemma 4 E4B and Xiaomi MiMo-V2.6-Flash; in June of this year this proportion was still 41%, with DeepSeek V4 Flash alone covering nearly one-third of the budget. OpenAI's GPT-6 Luna, GPT-6.1 Terra, and Anthropic's Claude Haiku 5.5 have reclaimed these ranges. The article offers three explanations: closed-source labs can use their own frontier models for knowledge distillation, cover various price points by model family, and achieve lower serving costs through larger-scale inference.

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Village study: Closed-source models have occupied the cost-effectiveness frontier, with open-source models optimal only in a 3% budget range

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Oct 30

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    Village study: Closed-source models have occupied the cost-effectiveness frontier, with open-source models optimal only in a 3% budget range

    Village's LLM Atlas statistics show that open-weight models are currently the best choice in only 3% of the budget range, almost all concentrated at the lowest price points, occupied by Google Gemma 4 E4B and Xiaomi MiMo-V2.6-Flash; in June of this year this proportion was still 41%, with DeepSeek V4 Flash alone covering nearly one-third of the budget. OpenAI's GPT-6 Luna and GPT-6.1 Terra, as well as Anthropic's Claude Haiku 5.5, have reclaimed these ranges. The article offers three explanations: closed-source labs can use their own frontier models for knowledge distillation, cover various price points by model family, and achieve lower serving costs through larger-scale inference.

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