Comment by brcmthrowaway

14 days ago

How does Meta make money from Llama?

Have you notice more verbose posts in your feed ? Llama is allowing everyone to sound more knowledgeable than they are. AI based content generation is like an instragram filter for intellect; everyone is pretending to be thoughtful.

It’s an extending innovation for them - makes them more efficient internally, and crucially engages their ad-driven customer base. Giving it away is great, it levels the playing field for competitors on tech while NOT giving them direct access to the billions of users FB has. Plus it makes it less likely that OpenBrainTM will achieve runaway quality internally.

They don't need to directly. They have multiple levers of products to get more money if they wanted to.

Threads for example is introducing ads and is likely being used to train their Llama models.

That is only one of many ways that Meta can generate billions again from somewhere else.

When people do cool stuff they share it on metas platforms, which drives ad impressions

How does OpenAI make money from AI? The vast majority of the planet isn't paying them $20/month, and it is likely that they will never recover training and inference costs just from subscription fees. Frying GPUs to generate Ghibli images is getting them a negligible amount of added revenue.

Now think of Meta and their suite of products which already generate $160B+/yr from advertising. Every extra minute they can get a user to spend on Facebook or Instagram, this number goes up. Think about how much money Meta will make if the next viral AI moment happens in their products.

TL;DR: AI -> engagement -> ads -> revenue.