3 Software Stocks Built For Lower Cost Open Source AI

The latest shift toward cheaper, more focused AI systems is putting a spotlight on open source AI software providers, as companies look for flexibility and tighter control over AI costs. That puts some large, well rated stocks exposed to open source models directly in the path of this trend, for better or worse. This article walks through three stocks that appear positively exposed to the same news event that is raising questions about expensive proprietary AI services. It is intended to help you think about where open source, cost aware AI adoption could matter most in your portfolio decisions.

Overview: Five9 is a cloud software company that runs contact centers for enterprises, using AI agents, automation and analytics to handle customer service, sales and marketing conversations across phone, chat, email, social media and other channels.

Operations: Five9 generates about US$1.17b in revenue from Internet Software & Services, with roughly US$1.04b from the United States and US$134.8m from international customers.

Market Cap: US$1.9b

Investors looking at open source AI should pay close attention to Five9 because its contact center platform is built to plug in cheaper, open-weight AI models, which can matter as enterprises become more sensitive to AI costs. Recent product launches around Voice AI Agents and rising enterprise AI bookings sit alongside analyst expectations for earnings growth and a P/E that is below the broader software peer average. The stock is assessed by Simply Wall St as trading well below an internal fair value estimate. At the same time, you need to weigh execution risks from leadership changes, insider selling and reliance on external borrowing, which makes the fuller story around Five9’s AI strategy and financial profile especially important to understand.

Five9’s AI story is accelerating, but the real tension sits between analyst earnings expectations, its P/E and how the stock is priced today. It is therefore worth reading the DCF valuation analysis for Five9

Overview: Sprinklr is a customer experience software company that helps large enterprises manage service, marketing, social media and customer insights in one cloud platform, using AI to coordinate conversations across voice, digital and social channels.

Operations: Sprinklr generates about US$871.2m in revenue from Software & Programming, with roughly US$436.4m from the United States and the rest mainly from EMEA at US$314.7m.

Market Cap: US$1.3b

Sprinklr stands out in this open source AI trend because its Unified-CXM platform is already wired to plug in different AI engines, including open-weight models, so customers can manage AI driven customer interactions without being locked into a single, expensive provider. The company is being recognized by Gartner and ISG for its AI rich social and customer experience tools, and recent products like LLM Insights speak directly to how brands appear in AI generated search. At the same time, investors need to weigh compressed margins from higher cloud and data costs, customer concentration and a relatively high P/E against analyst optimism and active buybacks. This is why the full story on Sprinklr’s AI economics and growth expectations matters before deciding how it fits into a portfolio.

Sprinklr’s AI ready platform, analyst optimism and active buybacks raise a clear question about what the market might be missing, and the analyst forecasts for Sprinklr could reveal the twist behind that gap

Overview: Grid Dynamics Holdings is an AI and cloud consulting company that helps large enterprises redesign their software, data and business processes, using open source models, agentic systems and custom platforms to turn AI concepts into production systems across retail, finance, manufacturing, healthcare and more.

Operations: Grid Dynamics Holdings generates about US$415.5m in revenue from Computer Services, with around US$287.4m from the United States and the rest mainly from Europe and other regions.

Market Cap: US$495.1m

Grid Dynamics Holdings sits at the center of the shift toward cheaper, open source and edge friendly AI, helping companies choose between proprietary and open models and then redesigning data flows, workflows and platforms to make those choices pay off financially. AI and data projects already form a meaningful slice of the business. The stock trades at a discount to some value estimates, and share buybacks have reduced the share count. At the same time, thin margins, recent losses, client concentration and reliance on external borrowing keep execution risk high. The key question is how those trade offs compare once the AI pipeline, margins and valuation are examined in detail.

Grid Dynamics Holdings is already wired into open source and cost aware AI, but the real story may be how its AI pipeline and margins line up with valuation. The analysis report for Grid Dynamics Holdings hints at where that tension could break next.

The three stocks in this article are just a starting point, and the full Open-Source AI Software Providers screener surfaces 11 more companies tied to open source AI with equally compelling stories around flexibility, cost control and model choice. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter most to you, so you can focus on the highest conviction opportunities in this theme.

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If Grid Dynamics Holdings or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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