It took a longer time than we expected, but its here. The free open source alternative for the expensive PS Jailbreak is here which saves you $169 which you would have to pay for the PSJailbreak USB modchip. The open source alternative for PSJailbreak is named as PSGroove which effectively means that you will now be able to create your own PS3 jailbreaks to replicate what PSJailbreak can do.
The software was not created to allow piracy, and instead was developed so that gamers can play unsigned third party applications as well as games. If developers can come up with some useful and LEGAL third-party homebrew applications, then I don’t see the harm in this.
Though PSGroove doesn’t cost a penny, you would have to copy it over USB development board (AVR HW) of your choice which normally costs $20. That is still way below what you would have to pay for PS Jailbreak. However, we must warn the readers that Sony might ban those who jailbreak PS3 from PSN.