Zuckerberg's Billion-Dollar 'Gift': The Hidden Agenda Behind Meta's Open-Source Push
#80 Angelinvesting.it - From idea to Series A - Weekly Newsletter
Dear reader,
Mark Zuckerberg, Meta's CEO, has just poured over $1 billion into LLama 3.1, one of the world's most advanced language models boasting 405 billion parameters. For Zuck, this sum is mere pocket change. But here's the kicker: he's giving it away for free.
You heard that right. This cutting-edge model is now open-source, available for anyone to use and commercialize at will. No strings attached.
Now, you don't become one of the world's wealthiest individuals by handing out billion-dollar software like candy. So, what's the catch?
During Meta's recent earnings call, a sharp-eyed Goldman Sachs analyst posed the million-dollar question: "Why give it away?" Zuck's response? Pure strategic brilliance.
The Endgame: Toppling the Gatekeepers
Meta's biggest thorn has long been Apple. With iOS dominating the mobile landscape as a closed ecosystem, Facebook found itself at Apple's mercy. Case in point: Apple's privacy policies have shaved billions off Meta's bottom line.
This explains Meta's massive investment in VR and AR. It's a bid to lead the next tech revolution, even if consumers aren't quite ready to don headsets that make them look, well, less than cool.
Zuckerberg is obsessed to prevent another iOS scenario. His solution? In the realm of AI and large language models, create top-tier tech and make it freely available. This way, Meta's apps can continue to mint money, unfettered by external constraints.
The Hidden Perks
This strategy comes with three juicy bonuses:
Weakening the Competition: By commoditizing LLMs, Meta indirectly undermines rivals like Google, OpenAI, Microsoft, and Amazon, whose bread and butter are LLMs and cloud services.
Talent Magnet: Becoming the industry standard creates a vast talent pool. More engineers working with your tech means more potential hires, more targets to buy and easier integration of market solutions.
Cost Control: Increased supply typically drives down prices. As more players adopt Meta's tech, it could lead to reduced costs for engineers, solutions, and infrastructure.
The AI Battlefield
The current AI landscape features three main players:
LLM Creators (like OpenAI and Mistral): They prefer closed models to monetize through paywalls.
Cloud Service Providers (Google, Microsoft, AWS): Happy to sell computing power by the truckload, they push proprietary solutions but won't complain if you use open-source models on their pricey servers.
Hardware Manufacturers (Nvidia, Apple): They play both sides, ultimately doing whatever boosts their hardware sales.
In this complex chess game, Zuckerberg's move is nothing short of brilliant. By open-sourcing LLama 3.1, he's not just being generous – he's rewriting the rules of the game.
2 resources to advance to pro
An interview just released by Zuck that shows you the future
“OpenAI can’t beat open AI”
It seems that OpenAi is running low with cash!!
My opinion is that not so many understand the second and third order effects of this decision. In 20/30 years, this will probably be considered one of the smartest business moves of all time. Can't wait to see what happens.