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Windows and Android took the commodity approach but they always had a business model, while Meta AI is currently running on Underpants Gnomes economics. 1. Spe

Windows and Android took the commodity approach but they always had a business model, while Meta AI is currently running on Underpants Gnomes economics. 1. Spend billions on a product, then give it away for free. 2. ??? 3. Profit! > Then Meta announced open sourcing Horizon OS. Open sourcing isn't really the right term, they're allowing third party hardware vendors to use it but it's still proprietary. Horizon OS is built on top of Android and they're following the Android playbook where the core is technically open source but the version nearly everyone actually uses has a bunch of proprietary Google (or Meta) software layered on top, and Google (or Meta) dictates the terms of using that software, which lets them ensure that revenue always flows back to Google (or Meta) regardless of who made the hardware.

herval 2y ago
They use the models they opensource in their own products, no? I don’t think Meta is looking to profit selling LLMs…
- TechDebtDevin 2y ago
  > "I don’t think Meta is looking to profit selling LLMs…" Said no one ever.
  - dartos 2y ago
    OP said it… I also don’t think meta is looking to sell LLMs. Probably LLM backed products. Likely marketing tools if anything. But not the same way OAI sells LLMs
    - TechDebtDevin 2y ago
      Maybe not "sell" but if you look at my other comment on this post you'll see their valuation has increased 162 billion since they released their first open source model. They definitely are looking to profit, they just take a different approach to monetization. Same thing in my book.
      - richardw 2y ago
        Excellent move to juice the stock price but it’s not profit. I think it’s more a hope for profit one day, a ticket to the game.
      - herval 2y ago
        So you’re saying Meta stock grew this year because they released an open source LLM?
        tim333 2y ago
        It's probably part of it oddly enough as investors want to stick money in stocks that can be classified as 'AI'.
      - dartos 2y ago
        > They definitely are looking to profit Since when? Lol
- falcor84 2y ago
  Not exactly "sell", but I do recall Zuckerberg saying that they have a revenue sharing agreement with platforms like AWS Bedrock that offer Llama inference.
bentice 2y ago
Don't they charge cloud vendors who sell LLAMA models on their platform? My understanding is that is part of the licensing agreement. Its more like: 1. Spend billions on a product. 2. Make it free to work with and charge to commercialize it. 3. Profit
sangnoir 2y ago
Meta and Google are the companies most able to monetize AI-generated or AI-enhanced[1] content on their respective properties. 1. Meta showed off automatic audio translation that preserves speaker's voices. Content creators can now expand their following beyond their spoken languages, generating more ad impressions.
tim333 2y ago
To quote Zuck: >Why Open Source AI Is Good for Meta >Meta’s business model is about building the best experiences and services for people. To do this, we must ensure that we always have access to the best technology, and that we’re not locking into a competitor’s closed ecosystem where they can restrict what we build. I guess that would translate to 1. Spend billions on AI, give away open source version 2. Use AI to get people to click on ads in their "best experiences and services for people" 3. $39bn profit in 2023 It's a bit like the real Underpant Gnomes business. Phase gnomes one collect underpants. Phase two Parker and Stone sign a $900m deal with Paramount. The money is made by an associated business.

herval 2y ago

They use the models they opensource in their own products, no? I don’t think Meta is looking to profit selling LLMs…

TechDebtDevin 2y ago
> "I don’t think Meta is looking to profit selling LLMs…" Said no one ever.
- dartos 2y ago
  OP said it… I also don’t think meta is looking to sell LLMs. Probably LLM backed products. Likely marketing tools if anything. But not the same way OAI sells LLMs
  - TechDebtDevin 2y ago
    Maybe not "sell" but if you look at my other comment on this post you'll see their valuation has increased 162 billion since they released their first open source model. They definitely are looking to profit, they just take a different approach to monetization. Same thing in my book.
    - richardw 2y ago
      Excellent move to juice the stock price but it’s not profit. I think it’s more a hope for profit one day, a ticket to the game.
    - herval 2y ago
      So you’re saying Meta stock grew this year because they released an open source LLM?
      - tim333 2y ago
        It's probably part of it oddly enough as investors want to stick money in stocks that can be classified as 'AI'.
    - dartos 2y ago
      > They definitely are looking to profit Since when? Lol
falcor84 2y ago
Not exactly "sell", but I do recall Zuckerberg saying that they have a revenue sharing agreement with platforms like AWS Bedrock that offer Llama inference.

bentice 2y ago

Don't they charge cloud vendors who sell LLAMA models on their platform? My understanding is that is part of the licensing agreement. Its more like: 1. Spend billions on a product. 2. Make it free to work with and charge to commercialize it. 3. Profit

sangnoir 2y ago

Meta and Google are the companies most able to monetize AI-generated or AI-enhanced[1] content on their respective properties. 1. Meta showed off automatic audio translation that preserves speaker's voices. Content creators can now expand their following beyond their spoken languages, generating more ad impressions.

tim333 2y ago

To quote Zuck: >Why Open Source AI Is Good for Meta >Meta’s business model is about building the best experiences and services for people. To do this, we must ensure that we always have access to the best technology, and that we’re not locking into a competitor’s closed ecosystem where they can restrict what we build. I guess that would translate to 1. Spend billions on AI, give away open source version 2. Use AI to get people to click on ads in their "best experiences and services for people" 3. $39bn profit in 2023 It's a bit like the real Underpant Gnomes business. Phase gnomes one collect underpants. Phase two Parker and Stone sign a $900m deal with Paramount. The money is made by an associated business.