Earlier this week, the AI startup Liquid, formed in 2023 by former MIT computer scientists, , as with , with day-one support for major inference stacks including llama.cpp, MLX, vLLM, SGLang, and ONNX — positioning it for deployment across consumer hardware, enterprise infrastructure, and embedded systems.
Liquid also offers an open source fine-tuning framework, found that LFM2.5-2.6B completed 35 tool calls to complete three tasks (checking weather and local time in six cities, converting one budget into six currencies, checking four hotels and booking for a date) 3.7 times faster than DeepSeek-V4-Flash (a whopping 284B parameters), the model has since its release last week.
Gemma 4's small models are multimodal generalists, accepting image and audio input alongside text, and use a Per-Layer Embeddings design that keeps only a fraction of their weights active per token — which is why Google markets them by "effective" size (2.3B and 4.5B) despite total footprints of 5.1B and 8B. Alibaba's Qwen3.5 small series, . DeepSeek-V4-Flash ships which permits use, modification, and redistribution — including commercial use — for organizations with less than $10 million in annual revenue. Commercial use by larger companies is not covered by the license, requiring a separate arrangement with Liquid AI; qualified nonprofits are exempt from the threshold for non-commercial and research purposes.
Labonne framed the structure as a way to sustain model development — "the models are really the moats, so we need to be sensible in the way that we license them; otherwise, we cannot make money, so we can't make more models" — while characterizing the threshold as a light-touch mechanism in practice.
Asked how the company would even know if a large enterprise quietly deployed the open weights, he was candid: "I think this is a question for our legal team, but personally, I don't know. And even if you're above $10 million, the only thing that we ask you is to contact us."
The company pairs its licensed model releases with freely published research, he added, including new structured-output evaluations and a training technique that mitigates the repetition loops common in small models — a failure mode he noted Qwen models are "kind of guilty of."
Small model, big enterprise implications
The launch coincided with an announcement from MacPaw, the Ukrainian software company behind CleanMyMac and Setapp, of a long-term strategic partnership with Liquid AI to build an on-device AI stack for the Mac.
Liquid AI will design and fine-tune foundation models for Eney, MacPaw's macOS assistant, running locally on Apple silicon through MacPaw's Elix inference engine and Mnemos memory layer, with results expected later this year.
Labonne pointed to the deal as a concrete validation of the size argument: "One of the reasons why they chose us is also because the model is quite small, and they don't have all the memory budget to run the other models."
The release arrives as hardware vendors, operating system developers, and enterprise software companies increasingly invest in local AI execution — and as agent harnesses proliferate across the industry. Liquid AI's bet is that deployment economics, not raw scale, will define an important segment of that market: agents running continuously, everywhere, at zero marginal token cost.
Whether small, highly optimized agent models become a significant segment of enterprise AI will ultimately depend less on benchmark scores than on operational reliability. But Liquid AI's latest release suggests the next competitive frontier is no longer simply building larger models — it's building models small enough, and capable enough, to run wherever enterprise workflows already live.
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