Meta has launched the “Llama for Startups” program, offering support and funding for U.S.-based startups working on generative AI applications. Eligible companies can apply until May 30, with potential monthly funding of up to $6,000 for six months. As Meta aims to strengthen its hold in the competitive AI space, it also faces challenges from rivals and recent setbacks with its AI models.
In a bold move aimed at encouraging innovation in the crowded tech landscape, Meta has kicked off a new initiative called “Llama for Startups.” This program seeks to lure startups into the fold by offering them direct support from the company’s Llama team, along with potential funding, judiciously tailored to assist in building generative AI applications. U.S.-based startups that have raised under $10 million, have at least one developer, and meet a few more criteria can apply until May 30—so, the clock is ticking for those who are interested.
According to a blog post by Meta, participating companies may receive funding of up to $6,000 each month, for as long as six months, to help lighten their financial load while developing their AI solutions. They’ll also benefit from a close collaboration with experts from Meta, who aim to assist in exploring creative uses for Llama that could propel their businesses forward. This support could prove vital as companies vie for a foothold in the quickly evolving generative AI space.
This new launch follows Meta’s efforts to maintain a strong presence in the competitive open AI model market. The Llama models have gained significant traction, pulling in over a billion downloads thus far. However, rivals like DeepSeek, Alibaba’s Qwen, and Google are closing in, presenting real challenges to Meta’s ambition of creating a comprehensive model ecosystem.
Adding to Metro’s troubles, Llama has faced challenges recently. Reports emerged from the Wall Street Journal noting a delay in the debut of Llama 4 Behemoth, one of Meta’s flagship AI models, due to worries that it wasn’t performing up to par with key benchmarks. Just last month, allegations arose that Meta had manipulated results on the widely known LM Arena benchmark by using a specialized version of Llama 4 Maverick for an impressively high score, while a different variant was publically available, leading to accusations of unfair practices.
Despite these setbacks, Meta continues to harbor lofty aspirations for Llama and its broader suite of generative AI products. The company has forecasted revenues from this line of business reaching between $2 billion and $3 billion by 2025, and potentially skyrocketing to between $460 billion and $1.4 trillion by 2035. Those figures reflect the industry’s belief in generative AI’s future potential, though it remains to be seen how it all shakes out.
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In addition to funding initiatives, Meta has also established revenue-sharing agreements with firms hosting its Llama models. Just recently, they launched an API to allow for custom releases, which could open more avenues for developers. There’s even talk from CEO Mark Zuckerberg, during the company’s earnings call, about Meta AI eventually incorporating ads and introducing a subscription model for additional features.
However, creating these products doesn’t come cheap. The budget for Meta’s generative AI initiatives was reportedly over $900 million in 2024, and projections suggest it could exceed $1 billion. This doesn’t even factor in the hefty costs for the infrastructure required to develop and train these models, with plans to invest as much as $60 billion to $80 billion in capital expenditures by 2025, especially focused on new data centers.
As Meta launches its Llama for Startups program, the aim is clear: to foster innovation in generative AI while facing stiff competition from rivals. The initiative not only promises financial support but also hands-on guidance from experts, making it a compelling offer for eligible startups. However, Meta must navigate its recent setbacks and sizeable costs as it strives for a significant market share. With ambitious revenue projections and a pending groundbreaking event on the horizon, it’s a critical moment for both Meta and the generative AI landscape.
Original Source: techcrunch.com
