Meta to Impose Charges on Cloud Providers for Previously Free AI Tech.

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Meta Platforms Inc. has revealed its plan to generate revenue from major cloud-computing companies that resell its artificial intelligence large language model, Llama 2.

In a quarterly earnings call, Meta’s CEO, Mark Zuckerberg, stated that they believe they should receive a portion of the revenue from cloud providers like Microsoft, Amazon, or Google, who offer the Llama 2 services as part of their own offerings. While Zuckerberg acknowledged that this revenue might not be substantial in the near-term, he sees potential for significant gains in the long run.

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Read more about Meta’s decision.

Interestingly, this stance marks a change from just a week ago when Meta had announced that it would provide the Llama 2 technology for free. On July 18, the company had shared its intention to collaborate with Microsoft and Amazon, allowing them to offer the large language model for commercial use without charging for access or usage. The initial plan was to leverage an open-source approach, encouraging a wider community of developers to contribute to improvements.

Despite the change in direction regarding revenue generation, Zuckerberg still considers Llama 2 to be open, and he reiterated the benefits of this approach during the earnings call. In addition to its open-source nature, Meta has now included a clause for major cloud companies. While they won’t be granted a free license to use the technology, they can establish a business arrangement with Meta to access and utilize it.

Large language models, often known as LLMs, form the foundation for text-based chatbots and have diverse applications beyond question-answering AI. These models undergo extensive training by processing vast amounts of information, typically sourced from the internet, in order to refine their ability to generate responses.

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As Meta moves forward with this new approach to monetize Llama 2, the AI and cloud computing industry will likely witness how this strategic shift shapes the future landscape of artificial intelligence services.

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