How does Meta (Facebook) make money on LLAMA (their version of chat gpt) if it’s free?

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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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Anonymous 0 Comments

All the answers about “you’re the product” and “make money later” is wrong.

Meta wants generative Ai (not just language models) to be cheap and plentiful so that the world generates a lot of content. Meta is in the business of showing you engaging content. The more good content there is in the world, the better for Meta.

This is a common business strategy called “commoditized your complements” where you make everything around you really cheap or free so that the thing you make money on is even more valuable.

https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/

This link has a ton of examples. They’re a little old but this is a standard tech company strategy that every tech company runs.

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