Bank of America Says Open-Source AI Won't Hurt Nvidia Demand

Bank of America analyst Vivek Arya issued a research note on Wednesday stating that the rise of open-source AI models does not threaten semiconductor demand. While Nvidia CEO Jensen Huang has publicly endorsed open-weight models, Arya asserts that proprietary closed models still dominate high-value AI workloads, specifically in complex reasoning, coding, and agentic tool-use.

The report indicates that closed models, including GPT-5.6 Sol, Claude Opus 5, and Gemini 3.1 Pro, continue to outperform the strongest open-weight alternatives in industry evaluations. Arya concludes that enterprises prioritize managed infrastructure and reliability over cost.

Because of this preference for proprietary systems, the analysis suggests that chipmakers like Nvidia Corp. will maintain strong demand regardless of the broader competition between open and closed AI model architectures.