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A comment on Meta's open AI hardware vision. Parent comment

Re:Meta's open AI hardware vision by jsheard on Tuesday October 15, 2024 @02:50PM (#41851829)
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.

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Re:Meta's open AI hardware vision by herval on Tuesday October 15, 2024 @03:29PM (#41852230)
They use the models they opensource in their own products, no? I don’t think Meta is looking to profit selling LLMs…
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Re:Meta's open AI hardware vision by falcor84 on Tuesday October 15, 2024 @04:01PM (#41852522)
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.
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Re:Meta's open AI hardware vision by TechDebtDevin on Tuesday October 15, 2024 @03:32PM (#41852252)
> "I don’t think Meta is looking to profit selling LLMs…"

Said no one ever.

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Re:Meta's open AI hardware vision by dartos on Tuesday October 15, 2024 @03:42PM (#41852344)
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

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Re:Meta's open AI hardware vision by TechDebtDevin on Tuesday October 15, 2024 @03:48PM (#41852400)
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.
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Re:Meta's open AI hardware vision by richardw on Tuesday October 15, 2024 @04:08PM (#41852589)
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.
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Re:Meta's open AI hardware vision by herval on Tuesday October 15, 2024 @06:26PM (#41853776)
So you’re saying Meta stock grew this year because they released an open source LLM?
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Re:Meta's open AI hardware vision by tim333 on Wednesday October 16, 2024 @01:13PM (#41861420)
It's probably part of it oddly enough as investors want to stick money in stocks that can be classified as 'AI'.
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Re:Meta's open AI hardware vision by dartos on Tuesday October 15, 2024 @08:57PM (#41854637)
> They definitely are looking to profit

Since when? Lol

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Re:Meta's open AI hardware vision by bentice on Tuesday October 15, 2024 @04:28PM (#41852759)
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

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Re:Meta's open AI hardware vision by sangnoir on Tuesday October 15, 2024 @04:59PM (#41853050)
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.

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Re:Meta's open AI hardware vision by tim333 on Wednesday October 16, 2024 @01:20PM (#41861482)
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.

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