Javier Ruiz Pérez’s Post

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Technology Strategist | Palantir Foundry & AIP

On my never-ending journey to understand how the world works: A few hours ago, Meta released Llama 3, another breakthrough in artificial intelligence. Great benchmarks and impressive takeaways. Totally brilliant. Let’s move away from the technical side, looking for a broader approach. As always. I’ve been immersed in the economics of technology for a while now. There is one thing I haven’t been able to stop thinking about lately, this Zuck strategy. Why is a company investing billions in an open-source technology? Is this just the beginning of something bigger? Reading Carmen Gutierrez tweet confirmed some of my thoughts. People should know what’s coming and be ready for it. In Carmen Gutierrez's words: “To Meta, OAI and others like it are a small nuisance, with the potential to become a real problem later. But by open-sourcing best-in-class models now, they can neutralize that threat completely. If everyone has it, no one does.” This is a perfect example of how tech companies seek to commoditize their product complements: “companies seek to secure a chokepoint or quasi-monopoly in products composed of many necessary & sufficient layers by dominating one layer while fostering so much competition in another layer above or below its layer that no competing monopolist can emerge.” More info here: (https://lnkd.in/dQCH2wHH) So at first glance, the implications are: - Meta keeps its advertising business, where it is already unbeatable (ad targeting remains AI). - Meta creates an infrastructure likely to be monetized in other ways. -Meta employs high-skilled workers who would otherwise be working for competitors. And most importantly: -This leaves the door open for companies to create their in-house models. I can’t even imagine the huge and beneficial implications of this. Giving companies, including small and medium-sized businesses, the ability to integrate artificial intelligence into their processes is a game changer. In the end, Meta is just trying to maintain its already existing superiority in its ad market and, along the way, provides a great opportunity to society. So, thank you competition for improving society.

Laws of Tech: Commoditize Your Complement

Laws of Tech: Commoditize Your Complement

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