Meta has introduced a new initiative, called Llama for Startups, aimed at encouraging young tech firms to integrate its Llama AI models into their applications. The program offers direct assistance from Meta’s AI experts and funding opportunities, specifically targeting U.S.-based startups that have raised less than $10 million, employ at least one developer, and are focused on developing generative AI solutions. Companies interested in participating must submit their applications by May 30. Under the program, qualifying startups can receive up to $6,000 per month for up to six months, intended to cover the costs associated with building and refining their AI applications. Meta’s experts will collaborate closely with these firms to help them navigate the initial phases and explore advanced use cases of the Llama models. This initiative underscores Meta's commitment to nurturing the AI ecosystem and fostering innovation among smaller businesses. The launch of Llama for Startups is a strategic move as Meta seeks to solidify its position in the rapidly evolving open AI model market. Despite the popularity of Meta’s Llama models, which have amassed over a billion downloads, the company faces stiff competition from rivals like DeepSeek, Google, and Alibaba’s Qwen. These competitors are making significant strides, putting pressure on Meta to maintain its dominance. However, Meta’s Llama models have encountered some challenges recently. The Wall Street Journal reported that the company has delayed the deployment of its next major AI model, Llama 4 Behemoth, due to performance issues on critical benchmarks. Additionally, in April, Meta faced criticism for allegedly using an optimized version of its Llama 4 Maverick model to achieve high scores on a popular benchmark, LM Arena, while releasing a different version to the public. These issues have cast a shadow over the company’s efforts to establish a robust and trusted AI ecosystem. Despite these setbacks, Meta remains optimistic about the future of its generative AI products. The company predicted that its AI offerings could generate between $2 billion and $3 billion in revenue by 2025, and potentially between $460 billion and $1.4 trillion by 2035. To realize these ambitious goals, Meta has entered into revenue-sharing agreements with hosting companies and recently launched an API for customizing Llama releases. CEO Mark Zuckerberg also hinted during the company’s Q1 earnings call that Meta AI, the company’s AI assistant driven by Llama, might eventually incorporate advertising and offer premium subscription services with enhanced features. Developing these AI products comes with substantial financial commitments. Meta’s genAI budget exceeded $900 million in 2024 and is projected to surpass $1 billion this year. The total investment includes the significant infrastructure required to run and train these models. For instance, Meta plans to spend a whopping $60 billion to $80 billion on capital expenditures in 2025, primarily for constructing new data centers. By offering financial and technical support to startups, Meta aims to not only bolster its own AI model ecosystem but also to foster a wider community of developers and innovators. This approach reflects the company’s broader strategy to stay ahead in the competitive AI landscape, leveraging both internal resources and external partnerships to drive technological advancements and secure its place as a leader in the field.