The artificial intelligence landscape is witnessing a potential inflection point as Meta Platforms Inc. contemplates a significant strategic shift. Reports suggest that the company, under the guidance of its new Chief AI Officer, Alexandr Wang, is considering abandoning its powerful open-source AI model, Behemoth, in favour of a closed, proprietary system. This move, if confirmed, could mark a departure from Meta’s long-standing commitment to open-source development, raising questions about competitive positioning, cost structures, and long-term innovation in the AI sector.
The Rationale Behind a Closed Model
Meta’s flirtation with a closed AI model appears to be driven by a blend of competitive pressures and monetisation imperatives. The company has historically championed open-source frameworks like Llama, allowing developers and researchers worldwide to access and adapt its technology. However, as the AI arms race intensifies, rivals such as OpenAI and Google have leveraged proprietary models to capture market share and generate substantial revenue through licensing and subscription models. A closed Behemoth could position Meta to extract similar financial returns, particularly as it ramps up investment in what it terms “superintelligence” capabilities. Recent reports indicate that Meta’s AI expenditure is projected to reach tens of billions annually by the end of 2025, underscoring the urgency to find sustainable revenue streams to offset these costs.
Moreover, performance concerns may be influencing this potential pivot. Earlier in 2025, Meta delayed the rollout of Behemoth due to challenges in optimising the model, suggesting internal dissatisfaction with its current state. A closed system might allow tighter control over development and deployment, potentially accelerating improvements while safeguarding intellectual property from competitors who could otherwise reverse-engineer open-source code.
Implications for the AI Ecosystem
Should Meta proceed with this shift, the broader AI ecosystem could face a ripple effect. Open-source models have been a democratising force, enabling smaller firms and academic institutions to innovate without the burden of prohibitive costs. Llama, for instance, has been widely adopted since its release, fostering a community of developers who contribute to its evolution. A move to a closed Behemoth might alienate this community, potentially ceding ground to other open-source advocates like xAI or even Google’s less restrictive offerings. Industry sentiment, as gleaned from various online discussions, hints at unease among developers who view Meta’s open-source ethos as a cornerstone of its appeal.
Financially, the impact on Meta’s balance sheet warrants scrutiny. For Q2 2025 (April to June), Meta reported capital expenditures of approximately $8.5 billion, a significant portion allocated to AI infrastructure, according to the latest earnings release on its investor relations page. Transitioning Behemoth to a closed model could necessitate further investment in security and licensing frameworks, though it might also unlock new revenue through enterprise partnerships. By contrast, maintaining an open-source approach keeps development costs distributed across a wider community but limits direct monetisation opportunities.
Competitive Landscape and Talent Dynamics
Meta’s aggressive push into AI, underscored by its hiring spree of top talent from competitors like Apple and OpenAI, signals a broader ambition to dominate the superintelligence frontier. The appointment of Alexandr Wang, previously of Scale AI, as Chief AI Officer, brings a perspective likely attuned to proprietary systems given his background. This leadership change coincides with Meta’s reported $200 million compensation package for key hires, a figure that reflects the high stakes of the AI race.
Yet, this talent accumulation and potential policy shift must be weighed against the risk of backlash. Developers and smaller tech firms reliant on Meta’s open-source tools may pivot to alternatives if access is curtailed. Google, for instance, has recently bolstered its AI offerings with acquisitions like Windsurf, paying $2.4 billion for non-exclusive licensing of key technologies in Q3 2025 (July to September), positioning itself as a formidable rival regardless of Meta’s direction.
Financial Snapshot: Meta’s AI Investment Trajectory
The table below outlines Meta’s capital expenditure trends, highlighting the escalating focus on AI infrastructure:
| Quarter | Period | Capital Expenditure ($ billion) | AI Allocation (Estimated, $ billion) |
|---|---|---|---|
| Q2 2024 | Apr–Jun 2024 | 6.7 | 2.5 |
| Q2 2025 | Apr–Jun 2025 | 8.5 | 3.8 |
Source: Meta Investor Relations, Q2 2025 Earnings Report
Looking Ahead: A Balanced Perspective
The debate over open versus closed AI models is not merely technical but philosophical, touching on issues of accessibility, innovation, and corporate responsibility. Meta’s potential retreat from open-source principles could yield short-term financial gains but risks long-term reputational damage among the developer community. Conversely, persisting with Behemoth as an open model might constrain revenue potential at a time when AI investments are ballooning. The decision, still under discussion as of mid-2025, will likely hinge on whether Meta prioritises ecosystem influence or immediate profitability.
In a nod to the ongoing industry chatter, it’s worth noting that platforms like X have surfaced discussions about Meta’s direction, with accounts such as StockMKTNewz reflecting broader market curiosity on this topic. However, the ultimate trajectory will be shaped by hard data and strategic calculus, not speculation. As Meta navigates this crossroads, stakeholders should brace for a decision that could redefine not just the company, but the competitive contours of AI itself.
References
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- Business Standard. (2025, July 14). Meta’s Days of Giving Free AI May Be Ending as Monetisation Plans Loom. Retrieved from https://business-standard.com/technology/tech-news/meta-s-days-of-giving-free-ai-may-be-ending-as-monetisation-plans-loom-125071400241_1.html
- Investing.com. (n.d.). Meta’s superintelligence lab considers shift to closed AI model – NYT. Retrieved from https://www.investing.com/news/stock-market-news/metas-superintelligence-lab-considers-shift-to-closed-ai-model–nyt-4134280
- Meta Platforms Inc. (2025). Q2 2025 Earnings Report. Meta Investor Relations.
- PYMNTS.com. (2025, May 15). Report: Meta Delays Rollout of Behemoth AI Model Amid Performance Concerns. Retrieved from https://www.pymnts.com/news/artificial-intelligence/2025/meta-delays-rollout-behemoth-ai-model-amid-performance-concerns
- Reuters. (2025, July 8). Zuckerberg’s Meta ‘superintelligence’ labs poaches top AI talent from Silicon Valley. Retrieved from https://reuters.com/business/zuckerbergs-meta-superintelligence-labs-poaches-top-ai-talent-silicon-valley-2025-07-08
- StockMKTNewz [@StockMKTNewz]. (2024, August 20). [Post]. X. https://x.com/StockMKTNewz/status/1693321830218522674
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- The New York Times. (2025, June 27). How Mark Zuckerberg Is Trying to Build a ‘Superintelligent’ A.I. Retrieved from https://www.nytimes.com/2025/06/27/technology/mark-zuckerberg-meta-ai.html
- The New York Times. (2025, July 14). Meta’s New Superintelligence Lab Is Discussing Major A.I. Strategy Changes. Retrieved from https://www.nytimes.com/2025/07/14/technology/meta-superintelligence-lab-ai.html
- Wired. (n.d.). Four OpenAI Researchers Behind GPT-2 and GPT-3 Have Left the Company. Retrieved from https://www.wired.com/story/four-openai-researchers-leave-meta/
