Guest: Hilary Carter (LinkedIn)
Company: The Linux Foundation
Show Name: The Source
Topic: Open Source

Open source has evolved from a grassroots movement to a global force shaping innovation, economic growth, and digital sovereignty. In this interview, Hilary Carter, Senior Vice President of Research at the Linux Foundation, shares key findings from the Foundation’s latest reports and what they reveal about the future of open source across regions and industries.

The discussion begins with Europe’s transformation into a major open source hub. Four years after launching Linux Foundation Europe, the region has shifted from community enthusiasm to treating open source as a strategic pillar of competitiveness. Public sector investment is growing, led by Germany’s sovereign tech agency, while industries from energy to automotive and finance are embracing open collaboration to accelerate innovation.

Carter highlights the growing role of European enterprises such as Mercedes-Benz, Bosch, and Orange in embedding open source into their operations, alongside major contributions from financial institutions like UBS and NatWest. The takeaway: Europe now represents about 30% of Linux Foundation membership and is driving both adoption and contribution at scale.

The conversation then turns to AI, particularly the rise of sovereign AI — national and organizational efforts to build AI systems tailored to local data, languages, and regulations. According to the Linux Foundation’s latest study, 79% of organizations view sovereign AI as a strategic priority. Carter emphasizes that open source is the essential accelerator for these initiatives, enabling countries and companies to collaborate globally while maintaining autonomy in data governance.

Carter also discusses new research covering regions like Africa, the Middle East, and Latin America, highlighting how open source AI is projected to generate hundreds of billions in GDP value across emerging markets. Beyond economics, the research underscores social benefits such as language localization, healthcare innovation, and workforce productivity.

The final portion explores the commercial side of open source. Contrary to long-held myths, the Linux Foundation’s findings reveal that commercial open source companies outperform traditional software ventures in funding, community growth, and exit valuations. The study shows that open source startups at the cutting edge of AI have attracted over $9 billion in deals, with IPO valuations seven times higher than average and M&A outcomes 14 times higher.

Carter closes with a look at the OSPO (Open Source Program Office) report, which shows a growing focus on managing AI and security risks. Nearly 80% of OSPOs are now engaged in AI governance, signaling a strategic shift in how enterprises balance innovation with responsibility.

Here is the edited Q&A of the interview:

Swapnil Bhartiya: Open Source isn’t just a movement anymore. It has become the backbone of innovation. It’s shaping industries, influencing policies, and even redefining how companies approach new technologies like AI. The Linux Foundation’s research team has been publishing reports to track these shifts, from Europe’s growing role in open source to the rise of sovereign AI and the business realities of commercial open source. And today we have with us once again, Hilary Carter, Senior Vice President of Research at the Linux Foundation. Hilary, welcome back to the show.

Hilary Carter: Thanks Swapnil, it’s great to be here. We’ve had an incredibly busy year at the Linux Foundation. At Open Source Summit Europe in Amsterdam, we reached a milestone of 16 reports published this year, with more to come. These reports are helping communities make informed decisions and driving real value. Recent releases include the 2025 State of the OSPO Report, a Europe-focused study, a report on the State of Commercial Open Source, and one on Sovereign AI.

Swapnil Bhartiya: Since we recently had Open Source Summit Europe, let’s start there. Can you talk about the Europe-focused report and how it connects with AI, which was a major theme at the event?

Hilary Carter: Our first Europe report was in 2022 when we launched Linux Foundation Europe. What’s exciting is to see how the narrative has evolved. In 2022, awareness in the public sector was limited. Today, Europe sees open source as a strategic priority for innovation and competitiveness. Governments like Germany’s are funding sovereign tech initiatives, and industries from energy to automotive to finance are contributing actively. It’s a complete shift from viewing open source as community-driven to seeing it as an economic catalyst.

Swapnil Bhartiya: Europe is known for being home to projects like the Linux kernel, MySQL, and Python. What kind of involvement are you seeing from private companies?

Hilary Carter: Engagement has been strong. The energy sector is leading in leveraging open source for grid optimization and renewable management. Automotive leaders like Mercedes-Benz are deeply involved, as are telecom and finance organizations like Bosch, Orange, UBS, and NatWest. It’s exciting to see banks contributing code and joining open source foundations.

Swapnil Bhartiya: Some fear fragmentation with regional open source movements — European, Chinese, American. Did your report find signs of that?

Hilary Carter: Not at all. The consensus is that “Fortress Europe” makes no sense. Open source thrives on global collaboration. Just like medical research depends on global expertise, open source benefits from cross-border contributions. It’s about what Europe does with the code, not where it comes from.

Swapnil Bhartiya: Let’s talk about the AI report.

Hilary Carter: AI represents the next general-purpose technology, much like the internet. Our research looked at sovereign AI — national or organizational AI systems built for local needs. Seventy-nine percent of organizations see it as a strategic priority. Open source is key to enabling collaboration while maintaining sovereignty.

Swapnil Bhartiya: Will you be studying how regions approach AI differently?

Hilary Carter: Yes. We’ve already published reports for Africa, the Middle East, and Turkey and are working on Latin America, APEC, and Canada. These studies reveal the economic potential — for example, AI could add $320 billion to MENA’s GDP and up to $234 billion to Africa’s by 2030. It’s about building localized, responsive AI that supports growth and inclusion.

Swapnil Bhartiya: Beyond the research itself, how do these reports help Linux Foundation identify where support is needed?

Hilary Carter: They highlight economic opportunities and inspire new contributors from all regions. The goal is to bring more voices, skills, and ideas into open source communities worldwide.

Swapnil Bhartiya: Let’s touch on the commercial open source report.

Hilary Carter: For years, open source was seen as a weak business model. Our findings show the opposite. Open source startups are thriving — attracting billions in funding, delivering higher IPO and M&A valuations, and strengthening communities. It’s a proof point that open source and commercial success go hand in hand.

Swapnil Bhartiya: Finally, tell us about the OSPO report.

Hilary Carter: OSPOs now play a key role in managing AI and security risks. Seventy-nine percent are involved in AI governance, up from 65% last year. Their dual focus on culture and compliance strengthens open source’s trust and resilience.

Swapnil Bhartiya: Hilary, thank you for sharing these insights. It’s clear your research is shaping the global open source agenda.