When most people think of Meta (formerly Facebook), they immediately associate it with platforms like Facebook, Instagram, or even the metaverse. However, Meta has rapidly emerged as a key player in the artificial intelligence (AI) arena, standing shoulder-to-shoulder with major AI developers like OpenAI, Microsoft, and Google.

Meta’s AI progress is spearheaded by its Llama models, which are being integrated across various platforms such as Facebook, Instagram, and WhatsApp through the Meta AI assistant. These models are also being used by businesses. In August, Meta revealed that organizations including Accenture, DoorDash, and Goldman Sachs are leveraging Llama to create their own AI solutions.

What’s unique about Meta’s AI approach is that it isn’t just using AI for its internal products. The company is also offering Llama as open-source software, allowing developers to freely access, modify, and innovate upon it. This contrasts with the closed-source approach of competitors like OpenAI, which limits how external developers can engage with its models.

This openness has made Meta a serious contender in the AI industry. Gene Munster, managing partner of Deepwater Asset Management, remarked that if Llama didn’t exist, platforms like OpenAI’s GPT and Google’s Gemini would have a stronger position in the market. Many developers who would have otherwise turned to these platforms are now opting for Llama.

Although the AI sector is still developing, Meta’s long-term strategy appears promising. The company is successfully embedding its AI into its own services, which not only enhances their utility but also demonstrates the viability of the Llama models to potential third-party developers. As Daniel Newman, CEO of Futurum Group, noted, Meta has been democratizing AI by making it accessible at multiple levels.

Beyond improving its own products and fostering goodwill with developers, Meta’s Llama models could eventually become a lucrative revenue stream. Meta CEO Mark Zuckerberg has hinted at potential partnerships where companies like Microsoft or Google that resell these AI services could share a portion of the revenue with Meta.

While these deals may not significantly boost Meta’s revenue immediately, Zuckerberg hopes they will play a more prominent role in the future. Meta’s stock performance reflects this optimism, with its shares having risen by 85% over the past year, compared to 25% for Microsoft and 18% for Google.

Despite Meta’s strides, its competitors are not standing still. OpenAI, Google, Microsoft, and other companies continue to evolve their AI offerings. Partnerships, like those between OpenAI and Microsoft or Anthropic and Amazon, provide these firms with the resources they need to keep pace with Meta’s progress. Additionally, platforms like Google’s Gemini benefit from their vast distribution networks, such as Android devices, while OpenAI could soon integrate with Apple’s Siri, making it even more accessible.

However, with Meta boasting over 3.27 billion daily active users across its family of apps, the company has significant opportunities to carve out its own path in the AI landscape.