Special Topic · Open Weights, Distillation & Local Runs

Real vs. Fake Open Source: How to Read a License

Three questions that locate how open a model is; the same yardstick applied to Qwen, Mistral, DeepSeek, Llama, and API-only models

THE QUESTION THIS PAGE ANSWERS

ANSWER FIRST

What is the key idea behind “Real vs. Fake Open Source: How to Read a License”?

Three questions that locate how open a model is; the same yardstick applied to Qwen, Mistral, DeepSeek, Llama, and API-only models

DECISION RULE

Make the claim earn its place. Use this page as a decision aid, not a definition to memorize. Connect the idea to one real task, one observable result, and one failure that would change your mind.

TRY NEXT

Write one question you could answer with evidence after trying this idea.

WATCH FOR

A conclusion that sounds complete but leaves the key assumption untested.

Three questions, and you have your answer

You do not need to read the license end to end. Ask the following three questions in order and you will have placed almost any model on the openness spectrum.

Question 1Can you download the weight file?

Everything else depends on this. If a model is reachable only through an API, then whatever the marketing says, you never get the control described in the last section. This one question rules out more than half the field.

Question 2Can you use it commercially, and are there conditions attached?

This is where people get caught. Some licenses permit commercial use but cap your user base; others limit you to research. Skip this check before you build a product and you will be scrambling for a license right when your numbers start climbing.

Question 3Can you train new models on its output?

In other words, can you distill from it. This decides whether you can build a model of your own on top of it, which is what the next two sections unpack. Vendors disagree on this point more than any other.

Reading is not the same as knowing how to use it, so take a model you are actually considering and walk it through. The wizard below is the same three questions, one at a time, and it tells you which tier the model lands in.

Can you download the weight file?
Question 1 of 3
Five vendors, one yardstick

Each vendor below gets the same four questions. The fourth one — whether the training data is public — is included to make one thing visible: in the world of large models, the word "open source" has already been redefined.

Qwen3, all sizes
No extra conditions
Apache 2.0
  • YWeights downloadable
  • YCommercial use, no user cap
  • YCan be used to train new models
  • NTraining data not disclosed
Mistral 7B
No extra conditions
Apache 2.0
  • YWeights downloadable
  • YCommercial use, no user cap
  • YCan be used to train new models
  • NTraining data not disclosed
DeepSeek-R1
No extra conditions
MIT License
  • YWeights downloadable
  • YCommercial use, no application needed
  • YDistillation explicitly permitted
  • NTraining data not disclosed
Llama 3
Conditions on commercial use
Llama 3 Community License
  • YWeights downloadable
  • LSeparate license required above 700M monthly actives
  • YCan be used to train new models
  • NTraining data not disclosed
GPT-4 / Claude / Gemini Ultra
API only
No public weight license
  • NWeights not downloadable
  • NNo local deployment
  • NCannot be used for training
  • NTraining data not disclosed
Based on the vendors' own license texts: Meta Llama 3 Community License, clause 2 (more than 700 million monthly active users in the preceding calendar month requires a separate commercial license from Meta); Mistral's official release notes (Apache 2.0, without restrictions); DeepSeek's official announcement of 2025-01-20 (MIT License, distillation to train other models explicitly permitted); Qwen3 official release notes. Verified 2026-08-07.
Sorted into three tiers
Tier 1 · Open weights with no extra conditions
Covered by standard open-source licenses such as Apache 2.0 or MIT. Downloading, modifying, commercial use, redistribution, and training new models all happen without asking permission, and there is no user-count threshold. This is the easiest case for a legal review.
Examples: Qwen3 across all sizes, Mistral 7B, DeepSeek-R1
Tier 2 · Open weights with custom terms attached
A license the vendor wrote itself, usually adding limits on commercial scale, use cases, or attribution. Technically it is fully usable; commercially you need to work out in advance whether you will hit the line.
Example: the Llama 3 family
Tier 3 · API only
No weights, which also means no local deployment, no on-premise option, and no further training. The capability may well be the strongest available, but what you rent is the right to use it.
Examples: GPT-4, Claude, Gemini Ultra
One fact that has to be stated plainly
None of the five vendors above has released its training data. By the standards of traditional software, the equivalent of source code would be the training data plus the training code, and shipping only the compiled artifact does not count as open source. What the large-model field calls open source actually means open weights. It is a watered-down definition the industry has tacitly accepted, and you should keep its boundaries in mind whenever you use the word.

It is also worth noting that licenses change. In the 2.5 generation Qwen used a tiered license: most sizes were Apache 2.0, while 3B and 72B had separate terms. Only with Qwen3 did the whole family standardize on Apache 2.0. What matters during selection is the license of the specific version you plan to use, not your general impression of the company.

Most sizes in the Qwen2.5 family use Apache 2.0; the 3B model uses the Qwen Research license and the 72B model uses the Qwen license. All eight models in the Qwen3 family use Apache 2.0. Source: Qwen official release notes.
Take this checklist with you

Next time you evaluate a model, walk through it in order:

1. Go to the official repository and read the license file itself, not the press release or the landing page.
2. Confirm the license for the specific size you intend to use; it can differ within one family.
3. If it is a custom license, look specifically for limits on user scale, use case, and geography.
4. Confirm whether training is permitted, since that determines whether fine-tuning and distillation stay open to you later.

The next section takes a different angle: why these vendors open-source at all. Open-sourcing costs money, released weights can never be taken back, and none of them is doing charity.

Put “Three questions, and you have your answer” back into its constraints

“You do not need to read the license end to end.” shows that a model, license, access route, or leaderboard is information—not an answer outside context. The real choice depends on task, data boundary, latency, quality floor, and operating cost.

Write elimination criteria before chasing the top score

The comparison in “Everything else depends on this.” should use the same real inputs while observing correctness, failure behavior, response time, and cost. A model leading a public leaderboard may still fail your license, privacy, or peak-latency constraints.

  • Y Weights downloadable
  • Y Commercial use, no user cap
  • Y Can be used to train new models

Without a test set, there is no reliable winner

Start with “The next section takes a different angle: why these vendors open-source at all.”: choose inputs that could genuinely change the decision and write down one counterexample that would reverse your choice. That is more useful than memorizing a single ranking.

From “Three questions, and you have your answer” to “Five vendors, one yardstick”

“Three questions, and you have your answer” grounds the problem in “You do not need to read the license end to end. Ask the following three questions in order and you will have placed almost any model on the openness spectrum”. “Five vendors, one yardstick” then moves it toward “Each vendor below gets the same four questions. The fourth one — whether the training data is public — is included to make one thing visible: in the world of large models, the word "open source" has already bee…”. Together, they show that the lesson is not just a conclusion to remember, but a claim with conditions.

Carry the judgment into the next situation

For model selection, write non-negotiable constraints from the real task first. Compare quality, failure behavior, latency, licensing, and cost on the same inputs; use a leaderboard only as a starting point.

  • “Three questions, and you have your answer”: You do not need to read the license end to end. Ask the following three questions in order and you will have placed almost any model on the openness spectrum
  • “Five vendors, one yardstick”: Each vendor below gets the same four questions. The fourth one — whether the training data is public — is included to make one thing visible: in the world of large models, the word "open source" has already bee…
  • “The closing point”: Y Commercial use, no application needed

The final “The closing point” brings the discussion to “Y Commercial use, no application needed”. The useful thing to carry forward is knowing which judgments must be revisited when input, scale, or risk changes.

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Discussing Real vs. Fake Open Source: How to Read a License Open Weights, Distillation & Local Runs
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AM
Asha MorganContent editor
INSIGHTField note

I turned one judgment from this article into a small experiment I could run today. Knowing what to observe next is more useful than simply remembering the conclusion.

ARTICLE DISCUSSION7 helpful
LH
Lin HarperIndie developer
INSIGHTInsight

After reading this, I first looked for the conditions behind the idea instead of copying the method into a project. That order made the later trade-offs much clearer.

ARTICLE DISCUSSION5 helpful
KM
Kiki MooreProduct operations
QUESTIONQuestion

When this judgment reaches real work, which constraint should be added first? I am curious which step matters most between reading and the first practical attempt.

ARTICLE DISCUSSION4 helpful