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Meta’s Llama 4 model behind schedule, underperforming: Report

Meta has bet a ton — some would even say the future of the company — on AI.

It has poured massive resources into building its AI infrastructure to train and run its Llama 3 AI model, including city-sized data centers and possibly a $200 billion data center campus.

But everything depends on its next model: Llama 4. And according to new reporting from The Information, things are not going according to plan. Development has been subject to several delays, and the release of DeepSeek’s breakthrough fast and cheap models caused Meta to make significant changes to its development plans.

The company is trying to get to 1 billion AI users and then monetize them, but it currently gives Llama 3 away for free to developers. Per the report, Meta is considering selling businesses API access to a hosted version of the model, which it currently does not offer, unlike startup competitors OpenAI and Anthropic.

The rest of the AI industry is also trying to figure out how to justify the hundreds of billions in capex spending planned for this year to its investors.

But everything depends on its next model: Llama 4. And according to new reporting from The Information, things are not going according to plan. Development has been subject to several delays, and the release of DeepSeek’s breakthrough fast and cheap models caused Meta to make significant changes to its development plans.

The company is trying to get to 1 billion AI users and then monetize them, but it currently gives Llama 3 away for free to developers. Per the report, Meta is considering selling businesses API access to a hosted version of the model, which it currently does not offer, unlike startup competitors OpenAI and Anthropic.

The rest of the AI industry is also trying to figure out how to justify the hundreds of billions in capex spending planned for this year to its investors.

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Anthropic really doesn’t want the US to help China with AI

Anthropic made its case for freezing China out of the AI race as much as possible in a new policy paper. The company warned that letting China catch up to US AI companies could risk AI-powered mass surveillance and huge risks to monitoring AI safety.

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Tesla finally reported un-redacted information about its Robotaxi crashes

There have been a total of 17 crashes so far among its Texas Robotaxis. Read about them all here.

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Alphabet sold $3.6 billion in Japanese yen bonds — a record for a foreign company — likely to help its AI capex binge

We now have the value for Alphabet’s Japanese yen bond raise — 576.5 billion yen, or $3.6 billion — and it’s a record for a foreign issuer in Japan. The deal was spread across seven tranches with maturities ranging from 3 to 40 years, allowing the company to lock in rates as low as 1.965%.

The latest deal comes on the heels of Alphabet’s massive US and European bond deals, where the company has tapped global markets for nearly $60 billion in fresh capital over the last few months. In a filing earlier this week, the search giant said it would use the proceeds for “general corporate purposes.” That likely means fueling its AI infrastructure build-out, which has pushed its projected 2026 capex bill to a staggering $190 billion.

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Rani Molla

Bloomberg: Relationship between OpenAI and Apple has deteriorated and legal action may be imminent

The two-year-old alliance between Apple and OpenAI has deteriorated, Bloomberg reports, with the AI giant now consulting legal counsel about issuing a potential breach of contract notice.

OpenAI executives allege that Apple failed to adequately integrate and promote ChatGPT on the iPhone, causing the AI firm to lose out on billions a year in subscriptions and hurt its brand, according to the report.

Meanwhile, Apple has expressed concerns over OpenAI’s privacy protection, and has been miffed that OpenAI has been working on its own hardware with former Apple design lead Jony Ive.

More recently, Apple, which has trailed its peers in developing AI, has decided to offer users their choice of AI models, rather than aligning exclusively with OpenAI’s.

Meanwhile, Apple has expressed concerns over OpenAI’s privacy protection, and has been miffed that OpenAI has been working on its own hardware with former Apple design lead Jony Ive.

More recently, Apple, which has trailed its peers in developing AI, has decided to offer users their choice of AI models, rather than aligning exclusively with OpenAI’s.

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