Meta Earns Revenue from Llama AI Model Hosts Through Revenue-Sharing Agreements

A recently unredacted court filing from the Kadrey v. Meta lawsuit reveals that Meta generates revenue from its Llama AI models through agreements with hosting companies. While Meta CEO Mark Zuckerberg previously stated that selling access to Llama was not the company’s business model, the new information confirms that Meta takes a percentage of the revenue from companies that host its models. The specific hosting companies paying Meta are not disclosed, but major cloud providers such as AWS, Google Cloud, and Microsoft Azure are known Llama hosts.

Zuckerberg had previously hinted at monetization strategies for Llama, including licensing fees for large tech companies reselling AI services. Meta has emphasized the benefits of an open AI ecosystem, stating that most of Llama’s value comes from contributions by the research community. However, the revelation of direct revenue generation could be significant in the ongoing lawsuit, where plaintiffs allege that Meta trained Llama on pirated e-books and engaged in infringing distribution methods.

Meta plans to increase its AI investments significantly, with projected capital expenditures of $60 billion-$80 billion in 2025. To offset costs, the company is considering introducing a subscription service for Meta AI with enhanced features.