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Jon Keegan

WSJ: Amid struggles, Meta delays release of Llama 4 “Behemoth” AI model

The jumbo version of Meta’s flagship AI model Llama has been delayed amid performance struggles.

According to the report from The Wall Street Journal, Meta engineers aren’t able to achieve the kinds of exponential leaps in performance that early generations of generative-AI models delivered, a phenomenon that is manifesting across the industry.

Recent breakthroughs in efficiency and cost achieved by breaking models down into smaller parts — like DeepSeek — are matching or beating scores of some of the drastically larger and more expensive models, like Meta’s Llama and OpenAI’s o1.

This shift has occurred as some tech giants like Microsoft appear to be pulling back on large commitments for AI data centers.

Meta recently upped its capex projections to $60 billion to $72 billion for this year, including a massive city-sized data center in Louisiana. The company’s gargantuan data center plans are built on the expectation of running the Llama 4 models.

Meta released two smaller versions of Llama 4 in April: “Maverick” and “Scout.”

The report says the delay is causing frustration within the company, as it has been hyping up expectations for the new model over the past year:

“Senior executives at the company are frustrated at the performance of the team that built the Llama 4 models and blame them for the failure to make progress on Behemoth, according to people familiar with their views. Meta is contemplating significant management changes to its AI product group as a result, the people said.”

Meta shares were down 2.4% on the news.

Recent breakthroughs in efficiency and cost achieved by breaking models down into smaller parts — like DeepSeek — are matching or beating scores of some of the drastically larger and more expensive models, like Meta’s Llama and OpenAI’s o1.

This shift has occurred as some tech giants like Microsoft appear to be pulling back on large commitments for AI data centers.

Meta recently upped its capex projections to $60 billion to $72 billion for this year, including a massive city-sized data center in Louisiana. The company’s gargantuan data center plans are built on the expectation of running the Llama 4 models.

Meta released two smaller versions of Llama 4 in April: “Maverick” and “Scout.”

The report says the delay is causing frustration within the company, as it has been hyping up expectations for the new model over the past year:

“Senior executives at the company are frustrated at the performance of the team that built the Llama 4 models and blame them for the failure to make progress on Behemoth, according to people familiar with their views. Meta is contemplating significant management changes to its AI product group as a result, the people said.”

Meta shares were down 2.4% on the news.

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Meta buys chip startup Rivos in effort to lower its reliance on Nvidia

Meta is buying AI chip startup Rivos for an unknown sum, as part of the social media companys effort to decrease its reliance on graphics processing units from Nvidia, Bloomberg reports. Rivos was seeking funding in August at a $2 billion valuation. Meta has been spending exorbitant sums in an attempt to create AI models that are smarter than humans, an effort that’s involved investing in developing its own AI chips.

⚡️ +267% ⚡️

A new analysis by Bloomberg looked at wholesale electricity prices and found that in the past five years, areas near data centers saw their prices spike as much as 267%. More than 70% of the price increases took place in areas less than 50 miles from a data center.

As tech companies race to build colossal data centers, unprecedented energy demands from the projects are passing some of the costs on to consumers.

tech

OpenAI’s first-half 2025 sales were 16% higher than all of 2024

OpenAI brought in $4.3 billion in revenue in the first half of this year, 16% higher than its total revenue in 2024, The Information reports, citing financial disclosures to shareholders. The ChatGPT maker also burned through $2.5 billion in the same time frame.

Currently the company is generating more than $1 billion in revenue each month, which puts it on track to reach its full-year projection for $13 billion in revenue and $8.5 billion in cash burn — a paltry sum compared to the $115 billion it expects to burn through 2029.

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