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 developers, marking 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 alternatives, especially 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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