Meta Mulls Swapping Out Llama

June 27, 2025 07:08 PM PDT | By EODHD

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Meta Mulls Swapping Out Llama — Image source: Kalkine Media

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Meta's (NASDAQ:META) top brass, including Mark Zuckerberg, are quietly debating whether to dial back its open-source Llama models and lean on closed systems from OpenAI or Anthropic instead. Over the past week, insiders told The New York Times that Meta execs have discussed de-investing in Llama after the April reveal underwhelmed some developers and benchmarks lagged behind rival releases. Warning! GuruFocus has detected 6 Warning Sign with META. Even so, a Meta spokeswoman insists there'll be multiple additional Llama releases this year. Behind the scenes, Meta is splashing out on AI talent and techincluding a $14.3 billion deal for half of Scale AI and seven-figure sign-on offers for OpenAI researchers like Trapit Bansal.

Switching from open-source to closed models could speed up Meta's time-to-market and tap best-in-class performance, but it also risks alienating the community that built Llama's early momentum. This article first appeared on GuruFocus. View Comments

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