Enterprise AI Glossary · Reviewed June 2026
Foundation Model
A large model trained on broad data that is adapted (via prompting, fine-tuning, or RAG) for downstream tasks.
What is Foundation Model?
Foundation models are the generic substrate of modern AI. Enterprises rarely use them raw; they layer retrieval, routing, and governance on top. For high-volume internal tasks, a smaller specialised model often outperforms a generic foundation model on cost, latency, and energy. See Small Language Models in Enterprise AI.
Related terms
Putting Foundation Model to work?
VDF AI runs governed AI agents on your own infrastructure — on-premises, sovereign cloud, or air-gapped. Book a working session to map the architecture.
Talk to VDF AI