Open Source AI Wars: Meta's Salvo with Code-Generating AI Against OpenAI

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1:24Pacific Life and Annuity, Phoenix, Arizona. We know that the world of AI and tech can be very cutthroat. And today I'm bringing you some news of a juicy new battle that is happening between meta and open AI. Essentially, meta is challenging open AI and kind of sabotaging it with a open source code generating AI, which is code LAMA. So today on the podcast, we're going to be diving into what is happening here, what I expect will happen in the future with this and the implications for the industry. So I think in the rapidly evolving landscape of AI-driven coding tools, Meta is really gearing up to unveil a massive software update that essentially autonomously generates programming code, right?

2:08Similar to something you would try to get ChatGPT4 to do, which it is capable of. And it's, you know, a lot of people are actually paying the premium price for ChatGPT4, ChatGPT premium, to actually get these capabilities of having it able to generate code. So this move places Meta on a collision course with the powerhouse OpenAI and Google, right? Both of these players are looking at this space, and now it looks like Meta is coming into the space as well. The new offering is called CodeLama, and it's projected to debut at an open source alternative. And, you know, so it's essentially going to be an open source alternative to what we currently have.

2:47Insiders have hinted at a possible launch within the upcoming week, so definitely keep your eyes peeled for this. And this is recently detailed in a report by The Information. So such a launch strategically positions CodeLama to rival the prowess of OpenAI's celebrated Codex model. And I think that, you know, this really is, today is really a new dawn for AI development. What we're seeing in the industry today, drawing from the foundation of, you know, Meta's rather well-regarded Llama 2 software, code LAMA essentially is emerging as the next step in AI's evolution. So LAMA 2 with its capabilities and understanding and generating conversational text has already set a pretty solid precedent.

3:29Its open source nature has enabled businesses to develop AI applications, breaking free from the, you know, you could call it the constraints of premium offerings. You know, we have people like OpenAI, Google, Microsoft that all are spearheading those. And Meta's latest venture now code llama is set to i think really further disrupt the ai paradigm so the do the tool is designed to facilitate the development of ai assistance that offer real-time coding suggestions to developers and this enhancement in coding productivity might potentially shift users away from paid tools such as microsoft's github copilot which leverages openai's codex for its operations and i think it might directly cut into microsoft's profits into openai's profits and others.

4:14And this is, again, an open source project. So arguably anyone could use it for free, depending on the licensing they come up with here. But let's do a little bit of a deep dive into Meta's AI ambition. So I think Meta's interests span far beyond its colossal social media footprint, right? They got Facebook and Instagram and WhatsApp, and they're really kind of excelling there, but we have seen them make a lot of moves in the AI space. And I think a big part of this is they you know they want to release a lot of research they want to release a lot of open source projects it's not really tied directly to their revenue so they put these things out there so they can keep top talent from ai firms on there so that they can develop some really incredible ai solutions i think the company has consistently been at the forefront of cutting-edge ai research and initiatives and you know this was this is obviously a testament with the unveiling of llama which is an ai model in february which essentially exhibited capabilities on par with OpenAI's GPT-3 at the time.

5:15Now, of course, we've moved a little further down the line, but I think it's worth highlighting that Llama's open source nature is leading to the birth of enhanced open source language models like Alpaca and Vukaina. And really building on this momentum, in July, we saw Matter roll out an improved version, which was Llama 2. And it was designed with a commercial license for business needs, which is really nice because the first version didn't have that commercial license. And so it was kind of, you know, like essentially would have been a dud. But if we're kind of looking at what Meta has to do here, this isn't exactly an easy task because really they're straddling innovation and revenue, right?

5:55Because right now Meta is, you know, notoriously losing money for their metaverse play that they, you know, maybe they'll be successful, but they really have tried. They purchased Oculus. They spent billions and billions of dollars building out a metaverse which is has very few users in it and so i think um all things considered meta definitely has to watch where they're spending money and so i think it is interesting that they're doing a lot of these open source and ai plays that are not directly i'm contributing to the bottom line and so i'm curious to see what investors are thinking about this but i will say one thing it is definitely doing is giving them a lot of it's buying them a lot of goodwill in the open in the open source and also the ai community for coming out with this.

6:36So for Meta CEO Mark Zuckerberg, AI investments, I think are top of mind. He shared his enthusiasm in June saying, quote, we continue to see strong engagement across our apps and we have the most exciting roadmap I've seen in a while with Llama 2, threads, reels, new AI products in the pipeline, and the launch of Quest 3 this fall. So obviously Mark Zuckerberg is very optimistic about the products that they have coming out. And he literally outlines Llama 2 as one of like the big products of the year, one of the big things they're focusing on and they're excited about. So I think despite, you know, the emphasis on efficiency, AI and virtual reality endeavors have racked up a lot of expenses for Meta.

7:18The company revealed that 2023's total expenses might hover between$88 billion to$91 billion, which definitely exceeded initial estimates. So I think it's going to be really interesting to see where exactly this goes and how much of profit this is going to eat into and more importantly you know how zuckerberg plans on monetizing these ai initiatives in the future or if he does right this is going to be a big area a lot of people are following so this is definitely something we will keep you updated and dive into more in the future