Mark Zuckerberg Announces That Meta's Llama Model Hits 1 Billion Downloads. 'Each Llama Download Represents A Vote Of Confidence In Open Source AI', Says VP - Meta Platforms (NASDAQ:META), DoorDash (NASDAQ:DASH)

Meta Platforms Inc. META CEO Mark Zuckerberg announced that the company’s AI model family, ‘Llama’, has reached a milestone of 1 billion downloads.

What Happened: Zuckerberg announced on Threads on Tuesday as he posted a meme stating ‘Me finding out Llama hit 1 Billion downloads’.

The increase indicates nearly a 54% surge from the 650 million downloads recorded in early December 2024. Llama, the AI that powers Meta’s AI assistant across various platforms such as Facebook, Instagram, and WhatsApp, is a crucial component of Meta’s broader AI product ecosystem strategy.

Despite certain commercial restrictions in its license terms that have sparked concerns among developers, Llama has seen extensive adoption since its 2023 launch. Major companies like Spotify Technology SA SPOT, AT&T Inc. T, and DoorDash Inc. DASH are currently utilizing Llama models in their operations.

Ahmad Al-Dahle, VP and Head of GenAI at Meta posted about the achievement on LinkedIn. “Each Llama download represents a vote of confidence in open source AI – and a shared belief that we can go so much further building together,” said Al-Dahle.

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Why It Matters: In January, Zuckerberg revealed ambitious plans for Llama 4, the next-generation open-source artificial intelligence model. The announcement came during Meta’s fourth-quarter earnings call, highlighting the industry’s shift toward more autonomous AI systems.

Zuckerberg also ensured that the Llama investment cycle will continue, with expectations for internal operational improvement, early wins on the consumer-facing side, and with advertisers.

That being said, Llama’s journey has faced obstacles. It’s currently embroiled in an AI copyright lawsuit accusing Meta of using copyrighted e-books for model training without permission. Furthermore, data privacy issues have compelled Meta to postpone or cancel Llama’s launch in several EU countries.

As Nvidia dances on the ceiling of the trillion-dollar club, another contender emerges in the AI chipmaking realm. While Broadcom has made strides in networking and AI accelerator chips, it's not the dark horse for the trillion-dollar congregation. Eyes turn to Taiwan Semiconductor Manufacturing Company (TSMC), waiting in the wings to ascend the throne.

Image source: Getty Images.

A Mighty Player in the Shadows

TSMC reigns supreme as the largest chip fabricator globally, commanding a lion's share of foundry spending. Armed with cutting-edge chip manufacturing prowess, boasting unmatched power efficiency and computational might, TSMC etches its mark in the AI landscape and beyond.

The company's colossal scale fosters a formidable advantage over competitors. Its robust revenue streams fuel relentless investments in research and development, ensuring TSMC stands at the vanguard of chip manufacturing innovation.

Driving Growth on the Semiconductor Highway

Painting a rosy future, TSMC anticipates a fruitful trajectory in the upcoming years. With third-quarter revenue forecasts standing tall at $22.4 billion to $23.2 billion, the company flaunts remarkable year-on-year growth figures. Additionally, a projected increase in gross margin signals pricing resilience amid escalating customer demands.

Amidst the backdrop of tech giants doubling down on AI infrastructure, such as Meta Platforms and Alphabet, TSMC stands poised to ride the crest of this technological wave. With an eye on pronounced capex expansions by industry behemoths, TSMC anticipates a windfall of demand for its chipsets.

Image source: Getty Images.

An air of anticipation looms over the tech sphere as the impending Apple iPhone release promises a host of new AI features. The allure of cutting-edge technology is expected to drive a surge in iPhone upgrades, propelling a ripple effect of chip demand, with TSMC positioned at the helm of this impending surge.

The Valuation Conundrum

Despite TSMC's colossal $875 billion market capitalization, its shares appear undervalued at current prices. Trading at a modest forward price-to-earnings ratio of 26.5, coupled with robust revenue growth and margin expansion, the company is forecasted to sustain earnings growth exceeding 20% annually. Analysts project a steady trajectory of 21.5% earnings growth per annum over the ensuing five years, painting a promising picture for investors.

Avoiding the Bandwagon: An Analysis of Taiwan Semiconductor Manufacturing

Despite this, Meta plans to launch new Llama models with reasoning, multimodal capabilities, and ‘agentic’ features in the coming months.

Meta stock lost 3.73% to close at $582.36 on Tuesday. The stock surged 17.35% over the past year, as per Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Mark Zuckerberg Announces That Meta’s Llama Model Hits 1 Billion Downloads. ‘Each Llama Download Represents A Vote Of Confidence In Open Source AI’, Says VP – Meta Platforms (NASDAQ:META), DoorDash (NASDAQ:DASH)

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