The rise of open-source LLMs like Deepseek’s R1 is disrupting the AI landscape, challenging proprietary models from OpenAI, Google, and Microsoft. As businesses and investors weigh the benefits of open-source AI—lower costs, greater customisation, and reduced vendor lock-in—governments are grappling with regulatory concerns, data sovereignty, and national security risks. In this blog I look at the strategic implications of this shift, outlining the risks, opportunities, and how companies, investors, and policymakers can navigate the rapidly evolving AI market.