I agree; there's a lot of muddiness in the term "open source AI". Earlier this year there was a talk[1] at FOSDEM, titled "Moving a step closer to defining Open Source AI". It is from someone at the Open Source Initiative. The video and slides are available in the link below[1]. From the abstract:
"Finding an agreement on what constitutes Open Source AI is the most important challenge facing the free software (also known as open source) movement. European regulation already started referring to "free and open source AI", large economic actors like Meta are calling their systems "open source" despite the fact that their license contain restrictions on fields-of-use (among other things) and the landscape is evolving so quickly that if we don't keep up, we'll be irrelevant."
"Finding an agreement on what constitutes Open Source AI is the most important challenge facing the free software (also known as open source) movement. European regulation already started referring to "free and open source AI", large economic actors like Meta are calling their systems "open source" despite the fact that their license contain restrictions on fields-of-use (among other things) and the landscape is evolving so quickly that if we don't keep up, we'll be irrelevant."
[1] https://fosdem.org/2024/schedule/event/fosdem-2024-2805-movi... defining-open-source-ai/