AI Price War Breaks Out: Meta Unveils Paid AI Model For First Time, Will Be “Among Most Affordable Options”

Shortly after a leaked Meta memo revealed the company was planning on putting an AI chip into production in September as it looks to double computing capacity to 14Gigawatts, the company also unveiled a version of its most advanced artificial intelligence model, Muse Spark 1.1, that includes a new paid tier for developersmarking the first time Meta has charged businesses for access to its models and providing a new revenue stream. It’ll be among the most affordable options on the market, Zuckerberg said in a Bloomberg interview ahead of the release.

“Since this is not an open source model, this is I think the first time that we’re doing a real serious API,” Zuckerberg said, referring to the application programming interface used to access Meta’s AI. “And the pricing is going to be very aggressive and attractive” he added indicating that Meta hopes to capture market share by undercutting its competitors, offering the new model at 25% of the cost of top models from OpenAI and Anthropic.

The new model’s biggest improvement is in its agentic capabilities, the Meta CEO told Bloomberg, and according to benchmarks the model does indeed appear to be in line with the competition.

He hopes to piggyback on the latest craze in AI development this year, which a month ago saw Goldman forecast that agentic AI use will lead to a massive 120 quadrillion monthly tokens being used by 2030.

Agents are the big theme of AI this year, with the label applied to systems that can complete multistep tasks on behalf of a user. Zuckerberg described Muse Spark 1.1 as having “state-of-the-art or very close to it” agentic reasoning and tool use. The model is also greatly improved when it comes to coding and Meta employees are using it internally to build products and features for various apps, he added. 

Meta will also introduce a new Meta Model API system, which will be used to collect fees from developers. Its API pricing is roughly 25% of the cost advertised by other top models from OpenAI and Anthropic, according to Bloomberg. Developers will be able to use Meta’s model for free, but only up to a point; they’ll be required to pay for access after reaching a certain token threshold, Zuckerberg said. 

Which means that legacy frontier models will now have to worry about domestic cheap alternativesespecially after xAI also released an agentic and coding model yesterday which will have to grab market share, in addition to much cheaper Chinese models.

“The pricing from some of the other labs is very extreme and has very high margins,” Zuckerberg said, underscoring that his strategy is to get Meta’s technology in front of as many people as possible. “We think that there’s a real ability to be able to offer frontier or very high-level intelligence at a much more affordable cost.”

Zuckerberg, 42, is spending aggressively to keep pace with rivals like OpenAI and Alphabet in a race to achieve what he calls superintelligence, or AI that can perform tasks better than humans. Meta has committed hundreds of billions of dollars to building the infrastructure necessary to develop superintelligence, including data centers and expensive AI chips. The company announced a new $10 billion data center investment in Canada as well as a new image-generation model just this week.

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Deadly bacteria found in major US city’s wastewater system tied to Mark Zuckerberg’s $800m data center

Meta‘s massive AI data center in Wyoming is facing scrutiny after an unexpected contamination incident emerged during construction.

The Mark Zuckerberg-owned company is developing a 715,000sq ft campus in Cheyenne that is set to go online next year, but its contractor has come under fire after city officials traced wastewater containing a rare bacterium to the project.

Known as Cupriavidus gilardii, the naturally occurring bacterium is typically found in soil and water. While harmless to most healthy people, it can cause severe pneumonia, bloodstream and lung infections, and, in rare cases, death among people with weakened immune systems. 

Cheyenne’s Board of Public Utilities (BOPU) said the bacterium was found in wastewater discharged by Goat Systems, a contractor working on Meta’s $800 million data center

According to the BOPU, the bacterium was first detected during routine wastewater sampling in late February, but was only announced last Thursday.

Meta said its general contractor, Fortis, began hauling industrial wastewater offsite and that independent testing found no trace of the substance to date.

Officials stressed that it did not contaminate the city’s drinking water, but said it disrupted the municipal reclaimed water system and required months of cleanup. 

However, the city permanently revoked Meta’s authorization to discharge wastewater from its fill-and-flush operations into Cheyenne’s treatment system, where the water is recycled and later used to irrigate parks and other public spaces. 

A Meta spokesman told the Daily Mail: ‘When the board shared that it found a substance in the city’s wastewater – not public drinking water – Fortis immediately stopped discharging industrial wastewater and began hauling it offsite.

‘Fortis also began its own water testing with an independent environmental specialist, which has found no trace of the substance. 

‘Meta is committed to being a good neighbor in Cheyenne, including through the protection of local water resources, and will continue encouraging collaboration between Fortis and the board until this situation is resolved.’

It comes as AI data centers face mounting scrutiny across the US for their enormous demands on local water and power supplies. 

According to Data Center Map, there are nearly 4,500 data centers nationwide, with some facilities consuming as much as 300,000 gallons of water a day, roughly the same amount used by 1,000 households.

Goat Systems LLC is the corporate entity Meta uses for the construction of the center, dubbed Project Cosmo.

Officials said the contaminated wastewater was discharged during a fill-and-flush process used to prepare the data center’s cooling system before it goes online. 

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Zuckerberg to spend over $10B on “historic” Alberta AI data centre investment, sources say

Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, is behind a massive artificial intelligence data centre planned for Sturgeon County, Alberta, Juno News has confirmed.

This is according to several well-placed sources with direct knowledge of the investment, one that all sources agree will be “historic” in magnitude.

The project is expected to involve roughly $13 billion in total investment, though the final figure could still change as it is unclear if the final proposal has been approved and signed off by Mark Zuckerberg and Meta’s board.

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Meta Restricts Engineers’ Use of Claude Code And Codex Over Model ‘Distillation’ Concerns

Meta Platforms has instructed engineers in its Applied AI division to limit or restrict their use of Anthropic’s Claude Code and OpenAI’s Codex coding and agent tools, according to internal documents reviewed by The Information. The policy, driven by concerns over inadvertent model distillation, aims to prevent outputs from rival AI systems from contaminating Meta’s own training data and model development processes for its Llama family of models (which, quite frankly, could only help).

The move reflects the increasingly zero-sum nature of frontier AI development, where companies aggressively protect the provenance and purity of their training data while seeking to reduce reliance on competitor tools. Internal guidelines referencing the restrictions date back to at least May, with the policy actively in effect as of late June. Meta has not publicly confirmed or commented on the directive.

According to the internal documents, strict limits have been placed on how engineers in the applied AI division can use the rival tools. The stated goal is to block “inadvertent distillation” of competitor model outputs into Meta’s AI development pipeline. The scope is targeted: it focuses on engineers working directly on model building and applied AI initiatives rather than the entire engineering organization.

Claude Code from Anthropic and Codex from OpenAI are basically the industry standard now for professional developers engaged in agentic coding workflows. These desktop and app-based interfaces can plan, write, debug, and iterate on complex codebases, offering powerful assistance at relatively low individual subscription costs. That accessibility, however, has increased the potential surface area for the risks Meta is now seeking to contain.

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How Facebook Has Censored My Account Over Criticism of Israel

Over the past few weeks, META’s censorship of my account has reduced my Reel Views by 68%, regular views by 27%, followers by 52%, and engagement by 21%.

I am by no means the greatest victim of META censorship, but I am in a position to document how and why they are censoring/limiting my reach on META platforms, all because of my objections to Israeli policies. This is a key reason as to why I am transitioning my work and output to Substack.This Substack is reader-supported. To receive new posts and support my work, consider becoming a free or paid subscriber.

This is what happened.

A few weeks ago, I was notified by META that my account would be limited going forward. My account will still be visible – at least for now – but “people will have to scroll longer,” and it won’t be “suggested” to people who aren’t my friends.

According to META, this censorship is because they claim my profile’s “content is unoriginal” and that it “has some issues.” (?!)

Anyone who follows me on META knows that my content is either me posting my own interviews with various outlets (by definition, that is original), my own opeds and commentary (also original), or pictures of my Samoyeds (admittedly, credit here goes to my dogs).

META’s “rules” define “unoriginal” as content that already exists on Facebook if you had no meaningful role in creating it,” “compiling and posting videos from multiple pages,” or “posting videos that you didn’t film or produce.”

Again, my postings really don’t violate these rules. My analysis is original, and most of the videos I post are my own interviews.

But I think we are getting closer to the real problem. I think META’s problem is not the posting of my own interviews (which constitute the majority of my posts), but rather the videos I post from Gaza. The problem, of course, is not that these videos are not my original content – META couldn’t care less about that.

It’s because it is videos documenting Israeli war crimes. Videos that have prompted Israel’s standing among Americans to plummet. Videos that are causing pro-Israeli lawmakers to lose their primary elections. Videos that have been censored from mainstream media and now TikTok, but that have still circulated on social media, partly thanks to accounts like mine.

Indeed, when I dug deeper, the only justification META provided for their censorship was that they had removed two videos of graphic violence I had posted on July 16 and July 30, 2025. That is, a year ago. At the height of the Israeli genocide against the Palestinian people.

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Meta pauses an AI training program that tracks employees’ keystrokes after an internal leak

Meta is pausing an internal AI training program after sensitive data was accessible across the entire company, according to screenshots obtained by Business Insider.

A screenshot showed that the leak exposed employees’ private conversations, performance data, and transcriptions. The incident was classified as a SEV 2 on a scale of 0 to 5, with 0 being the most severe.

A Meta spokesperson confirmed the incident and said the company is investigating.

“We have carefully designed this program with privacy safeguards, and while we have no indication at this time that any data was improperly accessed by Meta employees, we’re pausing it while we investigate,” the spokesperson said.

In April, Meta announced the AI training program, called the Model Capability Initiative (MCI), which was intended to improve the company’s AI models by using its staff’s keystrokes and mouse movements as training data. The program, which is mandatory for most staff, sparked a backlash from employees who felt uncomfortable with their data being recorded, Business Insider previously reported.

This leak is causing frustration within Meta, according to screenshots seen by Business Insider, with employees critical that data wasn’t locked down from the start.

“I am incensed,” one employee wrote on Monday about the recent leak in an internal group, according to a screenshot obtained by Business Insider.

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Why Meta Suddenly Loves the Kids Online Safety Act

For years, Meta cast itself as the reluctant holdout against the Kids Online Safety Act, the one company that just could not bring itself to endorse a bill that was, at least on the face of it, written to protect children, but has an ulterior motive.

That resistance lasted right up until the Senate sweetened the pot. Once lawmakers bundled KOSA with a federal block on state AI laws and a national digital ID push, two measures Meta has spent millions lobbying to win, the company located its conscience and decided the bill was tolerable after all.

POLITICO reported that the conversion arrived the moment the Senate paired KOSA with the App Store Accountability Act, a digital ID bill aimed squarely at app stores. Meta now sits beside Microsoft, Apple, X, Snap, and Pinterest, all of them cheering for the legislation. It makes for an awkward look; a law sold to the public as a leash on the biggest platforms, when most of the biggest platforms turn out to be holding the leash.

As we’ve said many times before, and it seems we’re having to now say on a daily basis, verifying how old you are means proving who you are. The systems that estimate your age want a government ID, a face scan, or enough surveillance of your behavior to make an educated guess. None of them confirm your age and nothing else; they confirm your identity and keep a copy, so the platform that once let you be a username now wants your legal name on file.

So why would a company that lives off your data fight to make you surrender more of it? The App Store Accountability Act would order Apple and Google to verify ages at the store, which would load the cost and the legal risk onto the two companies that run the stores. Its own apps pick up no new obligation at all. Meta collects the identity-checked internet it has wanted for years and gets to look like a bystander while Apple and Google play the heavy.

The deeper payoff is older than this bill. Meta has dreamed of a real-name internet since Facebook’s early days, back when it enforced an authentic-identity rule until the public revolt made the policy too expensive to keep.

“Age verification” revives that dream by statute and applies it to everyone, with the invoice mailed to somebody else. A network of confirmed, identity-linked humans is also a network where the bots that annoy advertisers thin out, and ad space attached to real people fetches a premium. Protecting children is the version for the cameras; the version that moves the company sits on the balance sheet.

The less advertised half of the package lives in the preemption language. A handful of states have started writing their own AI rules, some governing how companies grab biometric data and let algorithms make decisions about residents. A federal block would bulldoze those efforts and erase one of the few places ordinary people can still object to how these systems treat their information.

Meta strolls away with a single, gentler national standard while residents lose the local protections they had started to build and the whole trade gets filed under everyone wins, as long as “everyone” means Meta.

The bundle also tucks in the NO FAKES Act and this is where the child-safety wrapping paper comes off completely. The bill would let anyone sue over an “unauthorized digital replica” and would hit platforms with heavy penalties for failing to obey its demands, among them fast removal of flagged content and policies to cut off repeat offenders.

A company staring down those fines for guessing wrong on a hard case will pull lawful speech first and worry about the details later. What the bill builds is a takedown machine, with the lever handed to whoever complains the loudest.

The actors’ union SAG-AFTRA has been pushing the bill hard from the other side, gathering more than 16,000 signatures on an open letter that frames it as a shield against deepfakes used in scams, fake endorsements, and the replacement of human performers. “Unchecked AI can ruin lives,” union president Sean Astin said and on that narrow point, he has a fair case. The trouble is what the rest of the bill does and how it curbs satire and parody.

The latest version came back last month from a bipartisan group that includes Senators Marsha Blackburn, Chris Coons, Thom Tillis, and Amy Klobuchar, with OpenAI, YouTube, and IBM applauding from the wings. The Senate Judiciary Committee takes it up Thursday.

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Facebook Marketplace Enters The AI Thirst-Trap Era

Searching Facebook Marketplace in the AI era has revealed a strange new phenomenon: sellers are running product photos through chatbots or image generators to insert scantily clad women into listings.

This marketing ploy seemingly bets that thirst-trap imagery will boost clicks and improve the chances of selling whatever item is listed on the online marketplace.

“This dude on FB Marketplace has multiple listings for heavy Caterpillar industrial equipment superimposed with AI-generated female models. Must have industry-leading click-through rates,” journalist Trung Phan wrote on X.

Sure enough, the thirst-trap imagery appears to be working…

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Meta enters enterprise AI race with new business agent

Meta Platforms (META.O) on Wednesday unveiled an artificial intelligence agent aimed at helping businesses carry out day-to-day operations, positioning the social media giant as a player in the enterprise AI market.

Announced at the company’s WhatsApp-focused Conversations conference in ​London, the new product expands on existing business messaging services by enabling “agentic” capabilities in which the assistant can take actions on businesses’ ‌behalf, like booking calendar appointments and closing sales.

Meta said more than 1 million businesses were already using earlier chatbot versions of such agents on WhatsApp and Messenger. The new version will be added to Instagram as well and rolled out globally to businesses of all sizes.

The move hints at Meta’s ambitions to compete with rivals like OpenAI, Anthropic and Alphabet’s Google (GOOGL.O) in the market ​for enterprise applications of its AI tools, leveraging the reach of its social media apps to try to convince companies to consolidate their ads and ​other workflows.

“This is definitely an enterprise play,” Naomi Gleit, Meta’s head of product, told Reuters in an interview on the ⁠sidelines of the conference.

Shares of Meta rose more than 3% in morning trading.

The Business Agent can be customized to respond to queries on those apps, channeling a ​company’s tone and handling tasks such as answering frequently asked questions, qualifying leads and escalating complex queries to human staff when needed.

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Meta leads largest anti-scam operation with FBI and DOJ, leading to 63 arrests

Officials announced a massive, coordinated anti-scam operation led by Meta alongside the Federal Bureau of Investigation (FBI), Department of Justice (DOJ), Microsoft, Coinbase and Starlink, resulting in 63 arrests, millions of dollars in frozen cryptocurrency and the removal of over a million scam-related online accounts.

The initiative, announced Tuesday, represents Meta’s largest disruption campaign to date. It was described as the first coordinated effort of its kind to unite major technology companies, financial platforms and global law enforcement agencies against the broader fraud ecosystem.

Globally, recent federal efforts against these networks have resulted in the arrests of more than 300 individuals, the rescue of over 2,000 human trafficking victims and the seizure of billions in illicit cryptocurrency.

“Protecting people around the world from scams is one of our highest priorities. We’re proud to partner with industry and DOJ, FBI, Royal Thai Police, and other law enforcement agencies in taking this global fight directly to these Asia-based scam centers at their source,” said Chris Sonderby, Meta’s vice president and deputy general counsel, in a statement.

The operation spanned Washington, D.C., and Thailand, utilizing the U.S. Secret Service alongside law enforcement agencies from the United Kingdom, Australia, Canada, New Zealand and Thailand.

Authorities say these criminal networks steal billions of dollars from Americans annually through romance scams and cryptocurrency investment fraud. Several of the targeted organizations operate out of forced-labor compounds in Southeast Asia run by transnational organized crime groups.

During the crackdown, Meta has successfully removed about 1.4 million scam accounts, pages and groups from Facebook and Instagram, while the Royal Thai Police arrested 63 people suspected of having connections to the scam centers.

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