Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Alexandra Mendes

Min Read

May 30, 2025

How to Choose the Best Open Source LLM (2025 Guide)

Illustration of a robot sharing open source LLM insights with users, surrounded by gears, code, and documents.

Open source LLMs (large language models) are transforming how businesses and developers build with AI. Unlike proprietary AI models, open source LLMs provide full access to their code, model weights, and architecture. This makes them easier to customise, audit and deploy across a wide range of applications.

An open source LLM is a large language model with publicly available code and model weights. You can use, modify, and deploy it without incurring licensing fees, making it ideal for flexible and transparent AI development.

By 2025, some of the best open-source LLMs are expected to rival commercial alternatives in terms of performance and scalability. This article compares the top open source LLMs available today, examines their real-world applications, and provides practical guidance on how to evaluate and deploy them effectively.

blue arrow to the left
Imaginary Cloud logo

Why choose an open source LLM over a proprietary one?

Open source LLMs offer greater flexibility, cost efficiency and transparency than proprietary models. For organisations looking to maintain control over data, fine-tune models for domain-specific tasks or deploy AI securely on-premise, open source options provide the freedom to adapt without being locked into a vendor ecosystem.

A recent study by the Linux Foundation highlights that nearly 90% of organisations adopting AI integrate open source technologies, emphasising the transformative impact of open source LLMs on business and development practices.

Advantages in cost, flexibility and transparency

Unlike proprietary LLMs that often require paid APIs or restrictive licensing, open source models are typically free to use and modify. This allows developers to customise outputs, improve accuracy for niche tasks and deploy models within private infrastructure. Transparent training data and architecture also enable better auditing and bias detection.

Common limitations and risks to consider

Open-source large language models often require more technical expertise to deploy and maintain. They may lack polished interfaces or hosted infrastructure. Performance can vary depending on hardware, training methods and community support. Licensing terms also vary, so it is recommended to conduct legal and compliance reviews before implementation.

blue arrow to the left
Imaginary Cloud logo

Which open source LLMs are the best in 2025?

Whether you're deploying AI in production or evaluating research models, the best open source LLMs in 2025 strike a balance between performance, adaptability, and ease of access. Below is a curated list of top models, using the latest versions, structured for clear comparison.

1. LLaMA 4 (Meta)

Developer: Meta AI
Parameter Sizes:

  • Scout: 109B total parameters (16 experts, 17B active per token)

  • Maverick: 400B total parameters (128 experts, 17B active per token)
    • Use Cases: Conversational AI, code generation, multimodal understanding (text and image), knowledge assistants
    • License: LLaMA 4 Community License (restricted commercial use)
    • Best For: Teams requiring advanced multimodal capabilities, extended context handling, and efficient inference for complex applications

Meta's LLaMA 4 represents a significant advancement in large language models, introducing native multimodality and a Mixture-of-Experts (MoE) architecture. This design enables the models to process both text and images, providing more versatile AI applications.

Key Features:

  • LLaMA 4 Scout:

    • Architecture: MoE with 16 experts, activating 17B parameters per token

    • Context Window: Up to 10 million tokens

    • Deployment: Fits on a single Nvidia H100 GPU with int4 quantisation

    • Training: From scratch on 40 trillion tokens of text and images

    • Ideal Use Cases: Long-context applications, efficient inference on limited hardware


  • LLaMA 4 Maverick:

    • Architecture: MoE with 128 experts, activating 17B parameters per token

    • Context Window: Up to 1 million tokens

    • Deployment: Requires high-performance infrastructure, such as Nvidia H100 DGX servers

    • Training: Co-distilled from the larger Behemoth model

    • Ideal Use Cases: High-performance multimodal tasks, including complex reasoning and code generation

Both models are instruction-tuned and support 12 languages, making them suitable for a wide range of applications across different domains. Their open-weight nature allows for customisation and integration into various platforms, including Hugging Face and AWS.

Ideal if you're developing sophisticated AI systems that require handling of extensive context, multimodal inputs, and demand efficient performance across diverse tasks.

2. Mistral Medium 3 (Mistral AI)

Developer: Mistral AI
Parameter sizes: Not publicly disclosed
Use cases: Coding, STEM reasoning, multimodal understanding, enterprise automation
License: Proprietary
Best for: Enterprises seeking high-performance AI with cost-effective deployment options

Mistral Medium 3 is a frontier-class dense language model optimised for enterprise use. It delivers state-of-the-art performance at significantly lower cost, while maintaining high usability, adaptability, and deployability in enterprise environments.

Key features:

  • Multimodal capabilities: Supports both text and visual inputs, making it suitable for a wide range of applications, from programming to document analysis.

  • Flexible deployment: Can be self-hosted on just four GPUs, reducing the need for expensive infrastructure. This deployability ensures that businesses can run the model in hybrid or on-premises environments, maintaining full control over their data and infrastructure.

  • Enterprise integration: Offers custom post-training and seamless integration into enterprise tools and systems, facilitating domain-specific training and adaptive workflows.


Ideal if you're looking for a cost-effective, high-performance AI solution that can be tailored to your enterprise needs.

3. Falcon-H1 (TII)

Developer: Technology Innovation Institute (TII)
Parameter sizes: 0.5B, 1.5B, 1.5 B-Deep, 3B, 7B, 34B
Use cases: Long-context processing, multilingual applications, edge deployments, STEM tasks
License: TII Falcon License (Apache 2.0-based)
Best for: Organisations seeking efficient, scalable, and multilingual open-source LLMs suitable for a range of applications from edge devices to enterprise systems.

Falcon-H1 is the latest addition to TII's Falcon series, introducing a hybrid architecture that combines the strengths of Transformer-based attention mechanisms with State Space Models (SSMs), specifically Mamba.


Key features:

  • Performance benefits: Enables faster inference, reduced memory usage, and strong task adaptability.

  • Model range: Includes six models — 0.5B, 1.5B, 1.5 B-Deep, 3B, 7B, and 34B parameters — each available as base and instruction-tuned variants.

  • Extended context: Supports up to 256K tokens, ideal for long-form content, documents and multi-turn interactions.

  • Multilingual support: Native coverage of 18 languages, with scalability to over 100, making it suitable for global applications.

  • Open-source license: Released under the TII Falcon License (Apache 2.0-based), encouraging responsible and ethical AI development.

Ideal if you're looking for versatile, high-performance LLMs that can be deployed across various platforms and use cases, from mobile devices to large-scale enterprise systems.

4. Phi-4 (Microsoft)

Developer: Microsoft

Parameter size: 14B
Use cases: Complex reasoning, mathematical problem-solving, coding tasks
License: MIT (fully open)
Best for: Developers and organisations seeking a compact model that delivers high performance in reasoning-intensive tasks without the need for extensive computational resources.

Phi-4 is Microsoft's latest small language model, designed to excel in complex reasoning tasks, including mathematical and coding applications.

Key features:

  • Compact yet powerful: Phi-4 has 14 billion parameters, delivering impressive performance in a smaller footprint.

  • Benchmark leader: Outperforms many larger models in reasoning and code tasks, thanks to advanced training techniques and high-quality synthetic data.

  • Efficiency-focused: Optimised for low-resource environments, making it suitable for CPUs, edge devices and embedded systems.

  • Open licensing: The MIT license enables unrestricted use, both commercial and non-commercial.

Ideal for building AI features in lightweight apps, embedded systems, or CPU-constrained environments that require strong performance without relying on GPUs.

5. Mixtral (Mistral AI)

Developer: Mistral AI
Parameter sizes: 12.9B active parameters (Mixture of Experts)
Use cases: RAG systems, scalable AI assistants, enterprise automation
Licence: Apache 2.0 (fully open)
Best for: Enterprises needing high-throughput, cost-effective models with strong output quality

Mixtral is a sparse Mixture of Experts (MoE) model that activates only a fraction of its full parameter set per inference call, usually two out of eight experts. This design offers significant efficiency improvements, allowing it to deliver high-quality outputs with reduced compute costs.

Its strengths lie in customer-facing applications such as dynamic assistants and search-augmented workflows. Mixtral is open-source under Apache 2.0 and is gaining traction among teams that need scalable, enterprise-grade models with manageable costs.

Ideal if you require performance at scale but want to optimise for latency and infrastructure expenditure.

6. OpenChat 3.6 (8B)

Developer: OpenChat Community
Parameter size: 8B
Use cases: Instruction following, conversational agents, internal knowledge bots
Licence: Apache 2.0
Best for: Teams building aligned, open, high-performance chat models without vendor lock-in

OpenChat 3.6 is the latest version of the OpenChat series, fine-tuned on the LLaMA 3 8B base model. It’s designed for high-quality, instruction-following chat tasks and rivals proprietary models like ChatGPT in terms of alignment, helpfulness, and multi-turn reasoning, while remaining fully open under the Apache 2.0 license.

Key features:

  • Strong performance on reasoning, safety, and accuracy benchmarks

  • Outperforms larger models in dialogue and chat tasks.

  • Trained with C-RLFT for safer, more helpful responses.

  • Supports 8K token context and GGUF quantisation.

  • Apache 2.0 license allows commercial use without restrictions.

Ideal if you're building customer-facing virtual assistants, internal copilots or domain-specific chatbots and want a robust, open-source alternative with strong out-of-the-box alignment.

Here's a comparison table:

Open Source LLMs Comparison Table

How do open source LLMs compare by use case or industry?

Choosing the right open source LLM depends on more than just performance benchmarks. Use case, industry requirements and deployment environment all influence which model is the best fit. Below, we map top open source LLMs to practical applications across common business scenarios.

Enterprise chatbots and virtual assistants

  • Recommended models: LLaMA 4, OpenChat, Mistral Medium 3

  • Why: These models excel at multi-turn dialogue, instruction following and safe responses. LLaMA 4 and OpenChat are especially effective for user-facing tools thanks to their chat-specific fine-tuning and strong alignment.

If you're building a customer support bot or an internal AI assistant, look for models trained on conversational datasets with high context windows.

Content generation and marketing automation

  • Recommended models: Mistral Medium 3, Falcon-H1, LLaMA 4

  • Why: These LLMs perform well on natural language generation tasks. Mistral Medium 3 is efficient for short-form content, while Falcon-H1 is better suited for long-form or multilingual output.

For scalable content production, balance model size with deployment cost. Falcon offers superior depth, while Mistral delivers speed and agility.

Code generation and developer tooling

  • Recommended models: Mixtral, Phi-4

  • Why: Phi-4 works well in lightweight dev environments, and Mixtral supports high-speed inference for interactive tools.

Consider the programming language coverage, inference speed and model size based on your IDE or integration platform.

Regulated industries (finance, healthcare, legal)

  • Recommended models: Mistral Medium 3, Mixtral, Phi-4

  • Why: These models are available under fully open licences, which simplifies governance and audit processes. Mistral and Mixtral support fine-tuning for domain-specific control, and Phi-4 is ideal for on-premise deployment.

Open source models with permissive licences and transparent architectures are essential for compliance-heavy industries.

Education, prototyping and embedded AI

  • Recommended models: Phi-4, OpenChat

  • Why: Small models are easier to deploy in low-resource settings. Phi-2 is an excellent option for experimentation or on-device AI, while OpenChat enables interactive tutorials or training simulations.

In academic or prototyping contexts, favour models with fast inference times and minimal system requirements.

Here's the open source LLMs decision matrix:

Open Source LLMs Decision Matrix
blue arrow to the left
Imaginary Cloud logo

What factors should you evaluate before selecting an open source LLM?

Selecting the right open source LLM is not just about performance—it’s about aligning the model's characteristics with your technical constraints, compliance needs, and intended use case. Whether you’re evaluating for scale, speed or specialisation, the following criteria will help you choose confidently.

Model architecture, parameter size and context length

  • Why it matters: These factors directly impact performance, hardware requirements and how well a model handles complex prompts or conversations.

  • What to look for: Choose smaller models, such as Phi-4 or Mistral Medium 3, for low-latency use, and larger models, like Falcon-H1 or LLaMA 4, for depth and context handling. Consider the context window size (e.g., 8K vs. 128K tokens) when planning to process long documents.

For applications involving multi-turn dialogue, long documents or RAG pipelines, prioritise models with extended context windows and efficient attention mechanisms.

Licensing and commercial usage rights

  • Why it matters: Not all open source models are truly unrestricted. Licences can affect how and where you deploy.

  • What to look for: Models like Mistral, Mixtral and Phi-4 use permissive licences (Apache 2.0 or MIT), while LLaMA 4 and Falcon come with restrictions on commercial usage.

Always confirm whether your intended use, particularly in commercial products, is permitted under the model's licence terms.

Community support and ecosystem integration

  • Why it matters: Strong community backing ensures better tooling, ongoing updates and wider compatibility.

  • What to look for: Active repositories (e.g., GitHub stars, recent commits), third-party integrations (like Hugging Face, AWS), and frequent benchmark updates are all positive indicators.

Prioritise models with large, active communities if you want better documentation, model checkpoints and plugin support.

Fine-tuning capability and task adaptability

  • Why it matters: Pretrained models may require additional tuning to match your domain or brand voice.

  • What to look for: Models like LLaMA, Mixtral, and OpenChat are designed with fine-tuning in mind. Check for support for QLoRA, LoRA, or parameter-efficient tuning frameworks.

If customisation is critical, look for models with open weights, existing adapters and training examples available.

Inference efficiency and infrastructure fit

  • Why it matters: Model performance must match your available compute and deployment environment.

  • What to look for: Smaller models (e.g. 4Phi-) are ideal for CPUs and on-device use. Larger models will require GPUs or cloud-based orchestration.

Estimate costs for inference at scale and validate whether the model architecture is supported by your stack (e.g. ONNX, Torch, TensorRT).

Artificial Intelligence Solutions done right call to action
blue arrow to the left
Imaginary Cloud logo

How are open source LLMs deployed in real-world environments?

Once you’ve selected a model, the next step is operational deployment—turning theory into usable AI systems. Open source LLMs offer flexible deployment paths, but each comes with technical and architectural trade-offs, depending on your infrastructure and goals.

Deployment on cloud infrastructure vs on-premise

Cloud deployment

  • When to choose: If you need scale, fast provisioning or third-party tools.

  • Benefits: Access to managed inference APIs (e.g. AWS Sagemaker, Hugging Face Inference Endpoints), GPU acceleration, auto-scaling, and integrations with monitoring/logging stacks.

  • Best for: Startups, AI teams with DevOps support, fast prototyping and production scaling.

On-premise deployment

  • When to choose: If you handle sensitive data, need complete control, or operate under strict compliance policies.

  • Benefits: Full data sovereignty, custom optimisation, no external API dependencies.

  • Best for: Finance, healthcare, government, and regulated enterprises.

Tip: Use containerised LLM deployment with Docker and orchestration tools like Kubernetes or Ray Serve to scale flexibly across nodes.

Whether deploying on-premise or in the cloud, your AI architecture must support observability, compliance, and scale. Discover AI-driven trends in software architecture to ensure your setup aligns with best practices.

Security, governance and scaling considerations

  • Model governance: Ensure version control, audit trails, and reproducible outputs using tools like MLflow or Weights & Biases.

  • Inference security: Apply rate-limiting, request validation and encrypted communication to protect against prompt injection and data leaks.

  • Scaling: Load balancing across GPU nodes, using quantised models (e.g. GGUF, INT4) for high throughput and memory efficiency.

When deploying in production, adopt a zero-trust architecture, log model decisions, and build in observability from the outset.

blue arrow to the left
Imaginary Cloud logo

What does a typical implementation workflow look like?

Deploying an open source LLM involves more than downloading a model file. From initial selection to live inference, a clear implementation workflow ensures scalability, security and task alignment. Below is a streamlined, production-ready process to help guide your rollout.

From downloading model weights to an inference-ready setup

  1. Model selection and download

    • Choose a model based on use case, licensing and infrastructure.

    • Use trusted sources such as Hugging Face, GitHub or cloud marketplaces.

    • Verify integrity and review the model’s documentation and configuration files.

  2. Environment setup

    • Set up a containerised environment using Docker or Conda.

    • Prepare the runtime: PyTorch or TensorFlow, CUDA/cuDNN (for GPU), or ONNX Runtime (for optimised inference).

    • Confirm compatibility between model format (e.g. .safetensors, .gguf) and your runtime.

  3. Inference engine and framework integration

    • Use frameworks such as LangChain, vLLM or Transformers for deployment.

    • Optimise with quantisation or low-rank adapters (e.g. QLoRA) to reduce memory footprint.

    • Set up endpoints via FastAPI, Flask, or gRPC for production inference.

Tip: Use model parallelism or tensor parallelism when deploying large models, such as Falcon 180B or LLaMA 3 (70B), on a distributed infrastructure.

Fine-tuning strategies and tools for customisation

  1. Prepare your dataset

    • Curate task-specific, domain-relevant examples.

    • Use instruction-response formatting for chat applications or labelled text for classification.

  2. Choose a tuning method.

    • For resource-limited setups: Parameter-efficient fine-tuning (PEFT) using LoRA or QLoRA.

    • For full control: Fine-tuning (if you have GPU clusters and large-scale data).

  3. Training and evaluation

    • Use libraries like PEFT, Axolotl, or Hugging Face Trainer for fine-tuning workflows.

    • Evaluate using benchmarks (e.g. HELM, Open LLM Leaderboard), unit tests or custom task metrics.

Fine-tuning enhances relevance and mitigates risks such as hallucination or misalignment in high-stakes domains.

blue arrow to the left
Imaginary Cloud logo

Are there real-life examples of organisations using open-source LLMs successfully?

Open-source LLMs are already being deployed across various industries to power chatbots, automate compliance, and streamline internal operations. The following case studies demonstrate how teams are applying these models in production, proving their value beyond experimentation.

Case study 1: Deploying LLaMA 3 in financial services

Organisation type: Enterprise fintech platform
Use case: Regulatory document summarisation and client query automation
Model used: LLaMA 3 (70B), fine-tuned for financial terminology
Deployment: On-premise using NVIDIA A100 clusters and LangChain integration
Outcome:

  • 60% faster turnaround on compliance reviews

  • 85% reduction in manual query handling time

  • Maintained data control and satisfied governance requirements

Why it worked: LLaMA 3 provided a high-context window and strong language reasoning capabilities, enabling the team to automate nuanced workflows without relying on external APIs.

Case study 2: Using Mistral 7B for healthcare compliance

Organisation type: Private healthcare provider
Use case: Summarising clinical notes and generating post-visit summaries
Model used: Mistral 7B, deployed using Hugging Face Transformers and QLoRA
Deployment: Hybrid setup with on-prem inference and cloud-based model monitoring
Outcome:

  • Improved clinician documentation efficiency by 40%

  • Enhanced consistency in patient summaries

  • Achieved compliance through complete control over training data and outputs

Why it worked: Mistral’s small size and strong performance enabled real-time inference with minimal latency, making it ideal for time-sensitive clinical environments.

How can you ensure long-term success with open source LLMs?

Deploying an open source LLM is just the beginning. Sustained success depends on proactive monitoring, regular optimisation and aligning the model’s evolution with your business goals. Below are best practices to maintain performance, reliability and compliance over time.

Best practices for monitoring, retraining and maintenance

  1. Set up continuous monitoring

    • Track key metrics: latency, token throughput, model drift, and prompt effectiveness.

    • Use tools like Prometheus, Grafana or custom dashboards to visualise performance.

  2. Retrain on fresh data

    • Periodically update training sets with new domain-specific data.

    • Apply techniques such as active learning to enhance results with minimal human supervision.

  3. Detect and correct model drift

    • Compare current model outputs against baselines.

    • Introduce human-in-the-loop reviews for critical outputs in regulated settings.

  4. Refresh the deployment infrastructure

    • Upgrade to more efficient runtimes (e.g. vLLM, ONNX) or newer model versions when available.

    • Adopt quantised models (e.g. INT4) to improve cost and latency at scale.

LLMs evolve quickly—what’s efficient today may not meet demand six months from now. Build infrastructure that adapts, not just scales.

Building internal expertise and staying current

  1. Develop internal capability

    • Upskill engineering and product teams on prompt design, evaluation frameworks, and deployment tools.

    • Host internal workshops or create documentation to accelerate adoption and implementation.

  2. Follow key contributors and communities

    • Stay connected to GitHub repositories, Hugging Face updates, and community forums like Open LLM Leaderboard or Reddit’s r/LocalLLaMA.

  3. Review emerging models and benchmarks

    • Track updates to benchmarks like HELM, LMSYS Chatbot Arena and EleutherAI’s Evaluation Harness.

    • Evaluate new entrants quarterly to identify potential upgrades or complementary uses.

Long-term success depends on more than initial deployment—it's about continuous iteration, community engagement and internal capability building.

Final Thoughts 

Open source LLMs are no longer experimental. They're ready for production. With models like LLaMA 4, Mistral Medium 3, and Mixtral, businesses now have the freedom to build powerful, cost-effective AI solutions without being locked into a single vendor.

Choosing the right model depends on your goals, constraints and infrastructure. But with the right strategy, open source can match or even exceed the performance of proprietary alternatives.

Ready to deploy your open source LLM? Contact us today to get expert guidance on your next AI project. Our team at Imaginary Cloud specialises in helping companies evaluate, fine-tune and scale AI solutions built on open models. Whether you're starting from scratch or optimising an existing deployment, we can help you move faster and smarter.

blue arrow to the left
Imaginary Cloud logo
blue arrow to the left
Imaginary Cloud logo

FAQ

Is there a better large language model (LLM) than ChatGPT?

It depends on your needs. Proprietary models like GPT-4 remain the most capable overall, but open source alternatives such as Mixtral, LLaMA 4, and fine-tuned Mistral Medium 3 can outperform ChatGPT in specific tasks or offer greater customisability.

Is Hugging Face the best place to find open source LLMs?

Hugging Face is the most comprehensive platform for discovering, testing, and deploying open source LLMs. It provides easy access to model cards, inference APIs, community benchmarks and datasets.

Are open source LLMs safe to use in production?

Yes, when deployed with proper evaluation and monitoring. Many open models are fine-tuned for safety and include transparency features that help reduce bias and hallucination. However, responsibility for safe deployment ultimately rests with the user.

Do I need GPUs to run an open source LLM?

No, not necessarily. Models like Phi-4 are optimised for CPU inference. Larger models, such as the Falcon-H1 or LLaMA 4, benefit from GPU acceleration, especially for low-latency applications.

Which LLM model is best for personal use?

For personal projects or experimentation, Phi-4 or Mistral Medium 3 are excellent choices. They are lightweight, easy to deploy locally, and open for commercial and non-commercial use.

What is the current best local LLM?

As of 2025, Mistral Medium 3, OpenChat, and LLaMA 4 are leading choices for local deployment. They offer strong performance and can run on consumer-grade hardware with the right optimisations (e.g. quantisation, GGUF format, llama.cpp).

Digital Transformation Service call to action
Alexandra Mendes
Alexandra Mendes

Content writer with a big curiosity about the impact of technology on society. Always surrounded by books and music.

Read more posts by this author

People who read this post, also found these interesting:

arrow left
arrow to the right
Dropdown caret icon