Meta opens AI model to commercial use, throwing nascent market into flux

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The new version of the model, called Llama 2, will be distributed by Microsoft through its Azure cloud service and will run on the Windows operating system, Meta says.

NEW YORK, USA – Meta is releasing a commercial version of its open-source artificial intelligence model Llama, the company said on Tuesday, July 18, giving start-ups and other businesses a powerful free-of-charge alternative to pricey proprietary models sold by OpenAI and Google.

Making a model as sophisticated as Llama widely available and free for businesses to build atop threatens to upend the early dominance established in the nascent market for generative AI software by players like OpenAI, which Microsoft backs and whose models it already offers to business customers via Azure.

“Any incremental improvement in open-source models is eating into the market share of closed-source models because you can run them cheaply and have less dependency,” said Masad. Meta is also betting that it will benefit from the advancements, bug fixes and products that may grow out of its model becoming the go-to default for AI innovation, as it has over the past several years with its widely-adopted open source AI framework PyTorch.

“For us, it’s way better if the industry standardizes on the basic tools that we’re using and therefore we can benefit from the improvements that others make.”

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