Meta's LLaMa: Fueling AI Innovation and Driving Ad Revenue Growth

Meta Platforms' LLaMa, an open-source large language model (LLM), is not directly monetized but drives significant value across Meta's business segments. LLaMa powers AI advertising tools like Advantage+ Creative, leading to a reported 60% increase in return on ad spend for businesses like ObjectsHQ. This contributes to Meta's advertising revenue, which has fueled a 68% stock rise since early 2024. While direct monetization of LLaMa is not immediate, it enhances engagement on Facebook, WhatsApp, Messenger, and Instagram, indirectly boosting revenues. CEO Mark Zuckerberg indicated that monetization of Meta AI, powered by LLaMa, is not expected until after 2025. LLaMa also supports the Reality Labs segment, powering intelligence in Ray-Ban glasses. Meta plans to continue leveraging LLaMa to build AI tools and explore opportunities like selling advertisements in LLaMa-based apps.