Layer 2: AI Models — The Llama Ecosystem as Strategic Weapon

The Open Source Strategy

Llama isn’t charity — it’s a strategic weapon. By open-sourcing weights, Meta commoditizes the model layer, undermines competitors’ moats, builds ecosystem lock-in, and ensures infrastructure becomes the differentiation point.

The Llama Family

Product Details
Llama 4 Multimodal (text, image, video), multiple size variants, open weights
Meta AI 1B+ monthly active users, embedded across all apps, 20B+ images created
Business Applications Advantage+ Ads ($60B), Reels ($50B+), Business AI (1B+ threads)

AI already drives $100B+ revenue

Why Open Source? Four Strategic Reasons

1. Commoditize Models

If models are free, competitors can’t charge for them. Undermines OpenAI’s business model.

2. Build Ecosystem

Developers build on Llama. When they need scale, they come to Meta’s infrastructure.

3. Shift Value Down

If models commoditize, value shifts to infra. Meta owns the infra. Infrastructure is the moat.

4. Talent Attraction

Top AI researchers want to publish, want open work. Meta offers research + deployment.

The Architecture Evolution

  • Before: Hundreds of specialized models
  • Now: Three Giant Transformers (Facebook, Instagram, Ads)
  • Future: Single Unified AI — one system, trillions of daily decisions

This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.

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