Tech
tech
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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Tesla is back in the negative this year

After falling more than 6% yesterday in its biggest drop since July, Tesla is once again in negative territory for the year. Elon Musk’s company posted record earnings last month, buoyed by pulled-forward demand tied to the final quarter of US federal EV tax credits, but its margins slipped as steep discounts were used to clear inventory.

Now the stock, which only turned positive for the year in September, is under renewed pressure amid a broader tech and AI sell-off, as investors grow concerned that the Federal Reserve may pause its rate-cutting cycle. Adding to the drag are soft sales in Tesla’s second-largest market, China, and news that longtime bull Cathie Wood’s Ark Invest unloaded roughly $30 million in shares this week.

tech
Rani Molla

Meta overhauls Marketplace with AI insights and collaborative shopping

Meta announced Thursday that it’s giving its buy-and-sell platform, Marketplace — arguably the best part of Facebook and the most appealing to young people — a “glow up.” Each day in the US and Canada, one out of four Facebook daily active young adult users go to Marketplace, according to Meta. The overhaul includes the ability to create collections of listings you can share with friends or the public.

The site will also offer AI suggestions on what to ask sellers about your potential purchase. Unfortunately for all involved, the much-hated, easy-to-accidentally-press default message to sellers — “Hi, is this available” — remains unchanged.

Most promising, to us, for comedic purposes: “You can now react and comment directly on Marketplace listings, helping others learn about item quality and discover unique finds.”

The site will also offer AI suggestions on what to ask sellers about your potential purchase. Unfortunately for all involved, the much-hated, easy-to-accidentally-press default message to sellers — “Hi, is this available” — remains unchanged.

Most promising, to us, for comedic purposes: “You can now react and comment directly on Marketplace listings, helping others learn about item quality and discover unique finds.”

$15B
Rani Molla

Tesla CEO Elon Musk’s other company, xAI, has raised $15 billion in its latest funding round, CNBC reports. That’s $5 billion more than the company had raised in that same round in September. Its valuation remains at a sky-high $200 billion.

Tesla shareholders recently voted to invest in xAI but, due to a large number of abstentions, the board has yet to approve the proposal.

tech
Rani Molla

Microsoft to use OpenAI’s chips to improve its own in-house chips

As part of Microsoft’s investment in OpenAI, the company is using OpenAI’s development of custom AI semiconductors to help improve its own in-house chips, which have lagged behind peers, according to an interview with CEO Satya Nadella by podcaster Dwarkesh Patel.

“As they innovate even at the system level, we get access to all of it,” Nadella said. “We first want to instantiate what they build for them, but then we’ll extend it.” Under their updated agreement, Microsoft has access to OpenAI’s models and products — excluding the Jony Ive-designed AI device — through 2032.

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