LLAMA2 is out and it’s pretty fancy, and there’s a news report that they’re making a way bigger one. But if it’s just open source stuff, how do they justify the massive costs to make it? It seems like everyone can just use it for free.
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The same way they make money from Facebook even though that’s free as well. Advertising and selling user data.
Why do you think they’re making money on it right now? I would assume at this point most AI services run at a loss while they collect user data and info on habits of usage and then figure out how best to monetise these new products.
Facebook has huge cash reserves to run something like this at a loss for years if they want to.
From most smaller users, they’re not making money with it. They do plan to license it for business use, and make money on that.
I don’t think it’s supposed to be a profitable service at the moment. Facebook is just putting their foot in the doors so they won’t get left behind by Microsoft and Google.
How does meta make money on llama if it’s free? They don’t, and that’s not their goal
Their goal is to screw over open AI and chat GPT
Open AI is burning a lot of money to run chat GPT and the large language models that they’re using are out of date and have other questionable content
Meta’s large language model is up to date and open source meaning it can be iterated on and improved faster and for cheaper then open AI could possibly hope to keep up
It’s a type of loss leader tactic to undermine up-and-coming popular tech products and snuff them out before they become an actual threat
Meta does this kind of thing all the time they’ve just decided to focus on large language models this time around
The end goal? Either buy them out or remove them from the playing field
same way they made money on quest 3 two years ago
that’s called R&D phase
just because you have access doesn’t mean it’s a ready product
They don’t and they don’t need to. It simply is something that proves the quality and capabilities of Meta AI. They use it themselves, see improvements of it like Vicuna and Alpaca and can incorporate those improvements instead of doing all R&D themselves. Furthermore, very large companies will buy other AI models that have commercial versions from Meta AI, because Meta has shown it is an AI powerhouse. So they don’t need to make money in that sense, as Meta also does not have any real additional cost now that LLaMa is trained. But they also still make money, by having it incorporated into Azure and AWS, where you pay per computing unit and hour and they most likely get royalties from it that way.
“I don’t care if you give it away, get as many people using it as possible and then we can figure out what to charge for it. You need market share.” – Angel investor at a small startup
Where is that picture of Summer when you need it?
You are forgetting one major aspect. They are not running a free and open chat it used by millions. Their cost is a fraction of what open AIs is
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