{"id":18390,"date":"2024-08-31T00:02:57","date_gmt":"2024-08-30T18:32:57","guid":{"rendered":"https:\/\/bigbreakingwire.in\/jefferies-estimates-metas-llama-ai-business-could-be-worth-10-20-billion-suggests-open-source-growth-path-similar-to-red-hat\/"},"modified":"2024-08-31T15:28:47","modified_gmt":"2024-08-31T09:58:47","slug":"jefferies-estimates-metas-llama-ai-business-could-be-worth-10-20-billion-suggests-open-source-growth-path-similar-to-red-hat","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/jefferies-estimates-metas-llama-ai-business-could-be-worth-10-20-billion-suggests-open-source-growth-path-similar-to-red-hat\/","title":{"rendered":"Jefferies Estimates Meta&#8217;s Llama AI Business Could Be Worth $10-$20 Billion, Suggests Open-Source Growth Path Similar to Red Hat"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Jefferies estimates that Meta&#8217;s Llama AI models could be valued between $10-20 billion, which could contribute over a 1% increase to Meta&#8217;s market capitalization.<br><br>This valuation highlights Meta&#8217;s strong position in the open-source AI space, supported by its access to extensive data and computing resources, along with a large user base.<br><br>Despite this, the estimated value is still much lower than OpenAI&#8217;s $86 billion, largely because Llama has yet to develop significant monetization strategies.<br><br>Analysts suggest that Llama&#8217;s business model might be similar to that of Red Hat, which IBM acquired for $34 billion, or the creators of Spark, focusing more on open-source growth and partnerships rather than direct revenue generation.<br><br>Usage of Llama\u2019s tokens has seen significant growth, doubling between May and July 2024, and increasing tenfold since January 2024 among major cloud service providers.<br><br>While Meta\u2019s revenue-sharing deals with these cloud service providers are expected to remain minimal for now, there have been discussions between Amazon and Meta about a potential deal. This deal could see Meta spending over $1 billion annually on Amazon Web Services (AWS), positioning AWS to be one of the biggest beneficiaries of Llama&#8217;s growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jefferies estimates that Meta&#8217;s Llama AI models could be valued between $10-20 billion, which could contribute over a 1% increase to Meta&#8217;s market capitalization. This&#8230;<\/p>\n","protected":false},"author":1,"featured_media":18389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[619,618,5090,616,1],"tags":[5731,5727,3894,5730,471,5726,1814,5732,5728,5729],"class_list":["post-18390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stocks-in-news","category-brokerage-reports","category-short-news","category-stock-in-news","category-tech","tag-ai-business-model","tag-ai-valuation","tag-aws","tag-cloud-service-providers","tag-jefferies","tag-llama-ai","tag-meta","tag-meta-market-cap","tag-open-source-ai","tag-red-hat","entry","rows"],"jetpack_publicize_connections":[],"modified_by":"bigbreakingwire","jetpack_featured_media_url":"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/08\/file-JjEdWIDRWGnBBC5aYkdsiB9h.webp","jetpack_shortlink":"https:\/\/wp.me\/pfgCxS-4MC","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/18390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/comments?post=18390"}],"version-history":[{"count":0,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/18390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media\/18389"}],"wp:attachment":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media?parent=18390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/categories?post=18390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/tags?post=18390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}