What's Going On With Meta Platforms Stock Thursday?

Meta Platforms, Inc META stock is trading higher Thursday amid reports of the company bracing to launch a commercial version of its artificial intelligence model.

Now, Meta can compete with Microsoft Corp MSFT -backed OpenAI and Alphabet Inc GOOG GOOGL Google in the race to develop generative AI. 

Meta released its language model, LLaMA, to researchers and academics earlier this year. Still, the new version will be more widely available and customizable by companies, the Financial Times cites familiar sources. 

Also Read: Meta Platforms Steers Ahead in the Internet Sector: Analysts Envision Growth Driven by AI Content, Reels, and Innovative Ads

Meta says its LLMs are "open-source," implying the public release of details of the new model in stark contrast with the approach of competitors like OpenAI. 

The move also helps Meta enhance its moat as an open model, allowing companies of all sizes to improve the technology and build applications. Meta has been working on AI research and development for over a decade. It has been exploring charging enterprise customers for the ability to fine-tune the model to their needs by using their proprietary data. 

Meta's costly metaverse ambition has proven unpopular with investors, and Meta has recently raced to ramp up its AI investment. 

In May, Meta disclosed expanding the integration of augmented reality into Reels Ads and Facebook Stories, enabling brands like Sephora and Tiffany & Co to tap the Gen Z audience. 

CEO Mark Zuckerberg and others have hinted at a push towards creating multiple AI chatbots for individuals, advertisers, and businesses across Meta platforms Instagram, WhatsApp, and Facebook, powered by its LLMs. 

The benefit of open-source models includes a higher take-up by users, who then input more data for the AI to process. The more data an LLM has, its capabilities can become more powerful. 

Furthermore, open-source models allow researchers and developers to spot and address bugs, improving the technology and security simultaneously. 

Experts believe corporations can also use this strategy to capture new markets, FT writes. 

Price Action: META shares traded higher by 1.82% at $314.95 premarket on the last check Thursday.