Not all "open" models are equal. License terms vary significantly and determine whether you can use models commercially.

Common Model Licenses

• Apache 2.0: Fully open — use commercially, modify, distribute freely. Examples: Mistral, Phi-3
• MIT: Most permissive possible — no restrictions
• Llama Community License: Free for most commercial use — restrictions on very large companies (700M+ users)
• CC BY-NC 4.0: Non-commercial only — no commercial use permitted
• Gated models: Must request access — often for safety reasons

Bottom Line

For commercial use: prioritize Apache 2.0 or MIT. Always check the license tab on the model page before building a product.

Reference:

Hub licenses guide

https://huggingface.co/docs/hub/repositories-licenses