This strategic shift follows the successful introduction of Meta's Llama family of open-source large language models, marking a transition from a consumer-focused approach to one that targets enterprise clients.

Meta's focus on increasing ad spending is crucial for its revenue, and the company plans to leverage its Llama language models to enhance its advertising offerings.

CEO Mark Zuckerberg highlighted the $405 billion Llama 3.1 model, which he claims provides superior cost performance compared to competing models like OpenAI's ChatGPT.

Enterprises with over 700 million monthly active users will need to request additional licensing from Meta, which retains discretion over approval.

Zuckerberg emphasized that investments in AI are essential for Meta's future growth and infrastructure, particularly following a strong third-quarter performance.

Meta has appointed Clara Shih, the former CEO of Salesforce AI, to lead a newly established Business AI group aimed at making generative AI technology more accessible to enterprises.

In the third quarter of 2024, Meta reported a 19% revenue increase to $40.59 billion, driven by advancements in AI across its applications.

Adam Evans, previously vice president of AI Engineering at Salesforce, will succeed Shih at Salesforce, further indicating the competitive landscape in AI leadership.

The formation of the Business AI group may heighten competition between open-source and closed-source AI models, positioning Meta against companies like OpenAI and Mistral.

Unlike competitors such as OpenAI and Google, which operate on subscription models, Meta's strategy focuses on enhancing its advertising ecosystem by integrating AI tools into its existing platforms.

Recent features like AI-generated content carousels on Facebook and chatbots on Instagram showcase Meta's commitment to embedding AI into its services.

In her new role, Shih will oversee the creation and commercialization of AI tools designed for business applications, including a recently launched business AI chatbot on Facebook.