LLMs are even more proprietary than regular proprietary software, I think you've got it right here. They are destroying the free software movement and it seems like most people don't even realize what's happening.
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The damage isn't restricted to software. AI is the intellectual equivalent of asbestos.
Asbestos is an amazing fire retardant. That's why nearly every building built before we knew how cancerous it was contains it.
LLMs are a fundamentally different category of thing to software. Developing them is closer to breeding cows than writing code.