Which is more "democratized": a large language model which can be downloaded, and accessed as a library, originally based from the work of the FAANG giants (e.g. huggingface transformers) or an API, where every invocation is a call that flows through Cohere's servers?
"Data dumps" are privacy-friendly. For example, a user can download Wikipedias dumps and search through them to her hearts content, and never use the network. Zero data collection by third parties. All those observing the network can see is that she downloaded some data dumps.
"Web APIs" are "tech" company and surveillance-friendly. Network access is required and all activity is observed and recorded. Web APIs are also used as a means of controlling access to what is often publicly available data/info. The company does not own the data/info, its a middleman. "Too many" requests, API user gets cut off.
Too often its publicly available data/info that is being served by APIs. Hard to sell data dumps of public data as a "product". I sometimes see entities that provide "data dumps", e.g., a corpus, for free who then try to restrict usage of it through a license, yet they do not themsleves own the data. Whether they even have the rights to "license" it is debatable. They are never legally challenged so we cannot say for sure. The more interesting issue is whether they had the rights to collect the data thats in it. The so-called "web scraping" issue.