Meta Platforms Shifts AI Strategy to Closed Models, Implications for Investors
AI Summary1 min read
TL;DR
Meta Platforms is shifting from open-source AI models to closed ones like 'Avocado,' potentially using Chinese tech, which may boost commercialization but worries investors, causing a slight stock dip.
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MetaMeta PlatformsAI strategyclosed modelsinvestor concernsstock performance
Meta Platforms is considering a pivot to closed AI models, like "Avocado," which could incorporate tech from Chinese companies, including Alibaba Group. This shift in strategy would be a departure from open-source models like Llama and could provide Meta with more opportunities for commercialization. However, investors are concerned about this move, causing META stock to dip slightly. The stock currently trades at a P/E ratio of 28.5, which is higher than its historical average.