Meta Platforms Inc. META is collaborating with tech giants NVIDIA Corp. NVDA, Amazon.com Inc AMZN Web Services (AWS), Alphabet Inc.‘s GOOG, GOOGL Google Cloud and Microsoft Corp. MSFT Azure to advance its open-source Llama AI model.
What Happened: During Meta’s second-quarter earnings call, CEO Mark Zuckerberg emphasized the significance of these partnerships in driving the company’s AI strategy.
“Part of what we’re doing is working closely with AWS, I think, especially did great work for this release. Other companies like Databricks, Nvidia, of course, other big players like Microsoft with Azure, and Google Cloud, they are all supporting this,” Zuckerberg said.
The collaboration centers around Meta’s latest AI model, Llama 3.1, which Zuckerberg claims is “basically competitive and in some ways, leading the other top-closed models.” This open-source approach marks a departure from the closed models favored by some of Meta’s competitors.
Zuckerberg emphasized the strategic importance of open-sourcing Llama: “The reason why open sourcing this is so valuable for us is that we want to make sure that we have the leading infrastructure to power the consumer and business experiences that we are building. But the infrastructure, it’s not just a piece of software that we can build in isolation. It really is an ecosystem.”
Central to this ecosystem are Nvidia’s GPUs, which provide the computational power necessary for training and running advanced AI models.
This multi-cloud strategy not only broadens access to Llama but also potentially accelerates its development and adoption. By leveraging the strengths of multiple cloud providers, Meta can ensure that Llama is available to a wide range of developers and businesses, regardless of their preferred cloud platform.
“We want developers to be able to get it anywhere,” Zuckerberg said.
Why It Matters Meta’s aggressive push into the AI space is not new. Recently, Mark Zuckerberg revealed ambitions to dominate the AI assistant market, aiming to surpass competitors like Apple Inc.‘s Siri, Amazon’s Alexa, and OpenAI‘s ChatGPT. He emphasized that Meta AI is on track to become the most used AI assistant by the end of the year.
Moreover, Alibaba and Tencent have already integrated Meta’s Llama 3.1 into their cloud services, indicating the model’s rapid adoption and relevance in the global market.
Earlier this year, Meta also launched its MTIA chip to compete with Nvidia’s AI offerings, showing the company’s commitment to developing its own AI hardware.
Meta’s strong second-quarter performance and the leadership of Zuckerberg have been praised by industry experts like Gary Black, who commended the CEO’s drive and ability to execute. This has resulted in a significant surge in Meta’s stock, which has seen a 41% year-to-date increase and a 220% rise over the past two years.
Price Action: Meta shares surged by 7.17% in after-hours trading, reaching $508.87 at the time of writing. The regular session on Wednesday concluded with a 2.51% increase, closing at $474.83, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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