What's Meta AI's endgame? | Tech Industry - Blind
Meta E5 is dedicated to working on Llama, an open-source AI project, which they are providing for free. This move has raised questions about their true intentions behind this initiative. While the altruistic motives are doubted, it is essential to analyze the potential endgame Meta may have in mind.
Key Points:
1. Be the standard for AI foundation model
2. Ensure no one vendor (ie Apple) owns that model
3. Long run price for AI model is free to consumer anyway
4. Meta revenue model makes no money on AI models anyway (stated before, weaken your monopolistic competition)
Meta's revenue generation is not solely dependent on AI models but also on its vast dataset of human behavior. This valuable data asset positions Meta uniquely in the market. By making AI models freely available, Meta aims to establish itself as the industry benchmark while disrupting competitors in the AI domain.
Open-source AI providers generally do not have a stake in the cloud infrastructure sector. Therefore, they are inclined to minimize profit margins in AI hosting to shift more value towards dominating applications. This strategy mirrors Google's approach with the Android platform in the mobile industry.
If users become heavily reliant on Meta's AI models, Meta would solidify its position as a key player in the AI landscape, ultimately impacting stock valuation. This strategy could potentially weaken Apple's dominant market position, further strengthening Meta's foothold in the industry.
For more information, you can read Zuck's statement on this topic here
