Meta’s New Revenue Sharing Agreements with Llama AI Model Hosts Unveiled in Recent Filing
In July 2024, Meta CEO Mark Zuckerberg stated that selling access to Meta’s openly available Llama AI models was not part of the company’s business model. However, a newly unredacted court filing reveals that Meta is indeed earning some revenue through revenue-sharing agreements with companies that host its Llama models. This information emerged from the ongoing copyright lawsuit Kadrey v. Meta, where Meta is accused of training its models on pirated e-books.
The filing discloses that Meta receives a percentage of the revenue generated by companies hosting its models. While it doesn’t specify exactly which hosts are involved, Meta has partnerships with cloud service providers such as AWS, Nvidia, Databricks, Google Cloud, and others that offer services to ease the implementation of Llama models.
Zuckerberg hinted at these revenue-sharing possibilities during an earnings call and mentioned the intention to monetize Llama in other ways, such as through business messaging and advertising in AI interactions. He indicated that for large partners like Microsoft or Amazon, Meta believes it should share in the revenue from their reselling of Llama-based services.
Recently, Zuckerberg articulated that the bulk of value obtained from Llama comes from ongoing improvements contributed by the AI research community. The models power various Meta products, including the Meta AI assistant.
The significance of Meta’s potential direct revenue from Llama is underscored by the allegations in the Kadrey lawsuit, which claims that Meta used pirated works to create Llama, facilitating copyright infringement through methods like torrenting.
In light of these developments, Meta announced plans to significantly increase its capital expenditures dedicated to AI, projecting an investment of $60 billion to $80 billion in 2025. This spending aims to expand data centers and bolster AI development teams. To mitigate costs, the company is reportedly exploring the introduction of a subscription service for Meta AI, which would offer additional capabilities for users.
For more information on the lawsuit or the specifics of the agreements, details can be found in the court filing and Meta’s official blog posts.
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