Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg said the company will continue building its own frontier AI models rather than relying on third-party open-source alternatives, saying today’s open-source models lag behind the industry’s most advanced systems and that depending on other companies’ technology carries strategic risks.
Rejects an Open-Source-Only AI Strategy
During the company’s second-quarter earnings call, Zuckerberg said the company cannot rely on third-party open-source AI models and will continue building its own frontier models.
“Right now, the open-source models are not as strong as the frontier models, so no is the basic answer,” Zuckerberg said.
He added that Meta believes it can build better models internally and does not see relying on other companies’ AI technology as the right long-term strategy.
“I think we’re going to be able to do better work, and we think that there’s some risk in that reliance,” the CEO said.
Open Source Will Remain ‘a Big Part’ of AI Strategy
Despite emphasizing the need to build frontier models in-house, Zuckerberg said Meta has no plans to abandon its open-source approach.
“We expect that we will get back to releasing some open source models at some point soon. Like we’ve always said, we’re not dogmatic about this,” he added.
Earlier this month, Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang said the world needs “both frontier closed models and frontier open models.”
He shared an industry letter signed by more than 20 companies and organizations, including Meta, backing open models as a driver of innovation, cybersecurity and AI sovereignty.
Revenue Tops Estimates, Earnings Fall Short
Meta posted second-quarter revenue of $60.80 billion, topping analyst estimates of $59.50 billion, while adjusted earnings came in at $6.18 per share, below expectations of $7.13 per share, according to Benzinga Pro.
For the third quarter, Meta expects revenue between $61 billion and $64 billion, compared with analyst estimates of $62.68 billion.
The company increased the lower end of its full-year capital expenditure guidance to $130 billion-$145 billion, up from its prior outlook of $125 billion-$145 billion.
Price Action: Shares closed 1.31% lower on Wednesday at $585.61, but fell 7.45% to $542 on its earnings announcement after the bell.
Benzinga edge rankings indicate META has a Momentum score in the 13th percentile and a Growth score in the 89th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Frederic Legrand – COMEO / Shutterstock.com
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