Zuck's Open Source Playbook: Meta Muse Glimmer and 14-Page Manifesto

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Let's unpack Meta’s return to open source AI and its latest laptop-compatible model, Muse Glimmer.

Alongside its focus on cheaper, private on-device inference, we cover Meta’s broader AI strategy, including personalization, compute spending, competition on price, and its AI glasses and hardware efforts.

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TIMESTAMPS

0:00 Meta’s Open-Source Pivot
1:43 Why Local AI Matters
5:02 Meta’s Model Strategy
6:39 Zuck’s Open-Weight Thesis
10:43 Flooding the AI Market
13:00 Ads, Data, and Free AI
15:34 Cheaper Models Take Hold
18:41 The Earnings and CapEx Bet
20:33 Compute Is the Real Moat
22:24 What If Meta Fails?
23:48 Meta’s Bigger AI Vision

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RESOURCES

Josh: https://x.com/JoshKale

Ejaaz: https://x.com/cryptopunk7213

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Not financial or tax advice. See our investment disclosures here:
https://www.bankless.com/disclosures⁠

Josh works with Anthropic as a contractor. All views expressed are his own and do not represent Anthropic, its leadership, or its affiliates. Nothing in this episode is investment advice.

Creators and Guests

Host

Ejaaz Ahamadeen

Host

Josh Kale

What is Limitless: An AI Podcast?

Exploring the frontiers of Technology and AI

Josh:
Meta has pivoted again for the third time and now back to an open source company.

Josh:
The story of Meta has been pretty insane.

Josh:
Two years ago they were totally open source, hellbent on wreaking havoc on the

Josh:
entire marketplace of closed source models.

Josh:
They were doing this through their model called Llama and for those who weren't

Josh:
familiar, Llama was just kind of like this close to frontier open source model

Josh:
that was expected to change the world in a meaningful way.

Josh:
It did not go as Zuck foresaw and therefore they went and they closed off all

Josh:
their model development and went closed source just like all of the other labs now

Josh:
they're going back they're transitioning back to open source and as a result

Josh:
they've spent a tremendous amount of money on this so what happened in the last

Josh:
earnings report after all the capex spend came in

Josh:
zuck just dropped a 14 page paper explaining exactly why they're making a re-entry

Josh:
into the open source world

Josh:
That entry is defined by a singular model that we're going to talk about right

Josh:
now called Muse Glimmer. And Muse Glimmer is a really impressive model that

Josh:
fits on your laptop, runs locally, and I think it's going to shift the world of open source AI.

Ejaaz:
I think this is a great move from Zuck and Meta. And this is coming from probably

Ejaaz:
the Meta's biggest bear in the past on this show.

Josh:
Yeah, definitely. We're professional haters. I should preface this with.

Ejaaz:
I'm a professional hair of Zuck and Meta for the last six months,

Ejaaz:
but I love to see this pivot.

Ejaaz:
And I'll explain why. Number one, Metz's entire philosophy around AI has always

Ejaaz:
been open source. And his simple reasoning behind that is he believes like everyone

Ejaaz:
should get access to this thing, right?

Ejaaz:
If everyone has access to this thing, there'll be no centralized core power

Ejaaz:
for AI. There's no AI overlord going forwards. He then kind of pivoted on that,

Ejaaz:
like you mentioned, and now he's back with not one, but two new open source

Ejaaz:
models. So what are the models?

Ejaaz:
Number one, the headline is called Muse Glimmer. It's an open-weight,

Ejaaz:
open-source, 30 billion parameter model.

Ejaaz:
Now, if you're not familiar with the sizes of these relative models,

Ejaaz:
this is a pretty tiny model.

Ejaaz:
It can actually fit and run on your MacBook. It's 20 gigabytes of data or RAM

Ejaaz:
that it requires, which is significantly smaller than any other frontier model,

Ejaaz:
which is like hundreds and hundreds and hundreds of gigabytes.

Ejaaz:
And the way that they were able to achieve this is they took a bigger model,

Ejaaz:
and they made it smaller. It's something called quantization.

Ejaaz:
Now, why did they create this model?

Ejaaz:
Well, he believes or Meta believes that locally run private AI models.

Ejaaz:
Should be the future of how AI models are dispersed amongst everyone.

Ejaaz:
Right now, we pay subscriptions to get access to a model that lives in the cloud,

Ejaaz:
that lives in a centralized company like Anthropic, like OpenAI.

Ejaaz:
With this model, you can kind of run it locally.

Ejaaz:
And that brings several different advantages that we've mentioned quite a few

Ejaaz:
times on this show. The first one being it's cheap as hell.

Ejaaz:
The second one being it can run on your private data, so it can become a lot

Ejaaz:
more smarter and attuned to you specifically.

Ejaaz:
And the third thing is it's very efficient when it serves you answers and results

Ejaaz:
to your different prompts. So I think it's a good model, but it's certainly not frontier in any way.

Josh:
Yeah, it's far from frontier. And I imagine they're probably not really concerned

Josh:
about that. We mentioned this on previous episodes where there is this fight

Josh:
for the frontier, but now there are different frontiers.

Josh:
There is the frontier of intelligence, which Anthropic and OpenAI are kind of

Josh:
working on. Then there's the frontier of cost and efficiency per token.

Josh:
That's kind of where I see meta of place in themselves. In fact,

Josh:
they're fighting on multiple fronts at once.

Josh:
And it seems like Muse Glimmer is sitting at the very base of that because it

Josh:
is such a small model, it's so quantized, it's able to actually run on a local machine.

Josh:
I think the fully capable largest version of this takes about 55 gigabytes of

Josh:
memory, which runs on my MacBook that I have sitting on my desk right now.

Josh:
And that's really impressive.

Josh:
This puts them in a race that not many other companies are competing on,

Josh:
which is just like that edge inference local compute thing that I think we can

Josh:
expect to see out of Apple Fairleague soon.

Josh:
Like with the new Siri going to be running on local models, this is very much

Josh:
feels like a response to that.

Josh:
Where now for the first time you're able to run this free inference that's fairly

Josh:
capable it has a somewhat large context window i believe a couple hundred thousand

Josh:
tokens i'm not sure the exact number but a couple hundred thousand

Josh:
Tokens of context it has you know pretty good outputs in terms of tokens per second

Josh:
and it runs at a level that you would expect a frontier model would have ran at

Josh:
maybe say 18 months ago so it's not going to do any crazy difficult complicated

Josh:
tasks but for something that can run on your machine you could use anywhere

Josh:
in the world at any given time and you can trust it to manage all of your data.

Josh:
So for example, if you have a machine runs a lot of sensitive information,

Josh:
you want to put health information through that, you might not want to give

Josh:
to a public facing model.

Josh:
This is a really easy way of doing that in a way that we haven't really had before.

Josh:
And I think that's kind of step one in this new strategy that Zuckerberg's going

Josh:
for in, I guess you could call it like scorched earth 2.0, where why do you

Josh:
open source models? Well, you want everyone to go off, build on them to remove

Josh:
margins away from these frontier labs.

Josh:
And this seems like the first version of that that people are are kind of

Ejaaz:
Excited about and you see him apply this logic to quite a few of his models

Ejaaz:
now like he also open weighted or he plans to open weight.

Ejaaz:
Muse spark 1.2 which if you have been following along with the show

Ejaaz:
was a brand new model metas frontier model that they released i think it was

Ejaaz:
like a week and a half ago and what made muse spark 1.2 really special is it's a really good

Ejaaz:
coding model in the way that they've kind of engineered AI agents to kind of

Ejaaz:
like replicate amongst themselves,

Ejaaz:
take your code and go work in parallel.

Ejaaz:
So it's a really efficient way of working. And that's kind of like Meta's core

Ejaaz:
thesis, I feel, with a lot of these models that they're releasing.

Ejaaz:
It's like they're not trying to get the most intelligent model,

Ejaaz:
but they're trying to produce the most cheapest and affordable model that still

Ejaaz:
gets about 90 to 95% of the work done.

Ejaaz:
And Zuck has said in many times over the last couple of months that this is

Ejaaz:
Meta's core philosophy. They believe that locally private-run,

Ejaaz:
effective AI models will eventually outcompete the frontier. Now.

Ejaaz:
When you kind of compare these models, right, you're probably listening to this

Ejaaz:
and you're thinking, okay, who cares? Meta has a model. I haven't used Meta

Ejaaz:
AI intelligence in God knows how long.

Ejaaz:
Why should I use this model? Well, if you are using, say, the Anthropic or OpenAI

Ejaaz:
API and you're spending a couple thousand bucks a month, even a couple hundred

Ejaaz:
bucks a month, if you're an enterprise that's spending 10 to hundreds of millions of dollars per year,

Ejaaz:
this might be a model that might be more bang for your buck.

Ejaaz:
And listen, you're not going to use it for everything. You're not going to get

Ejaaz:
it to plan your entire company strategy.

Ejaaz:
You're not going to get it to build a brand new app from scratch and expect

Ejaaz:
it to be the best thing, but you'll use it as a workhorse, maybe in conjunction

Ejaaz:
with some of these more intelligent models.

Ejaaz:
So it's great to see Zuck kind of like reprise Meta's role in open source.

Ejaaz:
If we remember, like in the past, it was Lama and then he kind of like pivoted

Ejaaz:
and everyone was like kind of super angry about this. I'm glad that he's doing this.

Ejaaz:
The question is like, why is he doing this, right? Like, you know,

Ejaaz:
why would this make sense for Meta, which is a for-profit publicly traded company,

Ejaaz:
he sucks, still wants to make a lot of money.

Ejaaz:
How does this make any sense at all? And he kind of dropped his entire thesis

Ejaaz:
yesterday when he announced that he's open weighting a bunch of these models.

Ejaaz:
He goes, I believe everyone should have access to super intelligence.

Ejaaz:
And I wrote a long piece about Meta's philosophy and values for building that world.

Ejaaz:
And essentially like this future that he describes balances on like three core

Ejaaz:
pillars. Number one is he believes everyone should be individually empowered,

Ejaaz:
aka get access to their own private AI model and that it shouldn't be centered

Ejaaz:
in specific frontier AI labs.

Ejaaz:
Number two, he believes the thing that pushes humanity going forwards is invention.

Ejaaz:
So humans' ability and intention to invent brand new things should drive who

Ejaaz:
gets access to these different models. And that could be anyone and everyone.

Ejaaz:
And the third thing is he just believes in a core balance of power,

Ejaaz:
which is something ironically that adversaries over in China have been advocating

Ejaaz:
for a while now. So it's nice to see like a frontier American AI lab advocate for the same.

Josh:
It is, but it feels a little bit like I can't, I can't feel like this is a high

Josh:
conviction post because the sentiment has changed so much.

Josh:
It's not like he's like they started this way, but then they changed this way

Josh:
when it wasn't working. And now that things are working, they're going to go

Josh:
back and start to believe this. It feels like they're just not really standing strong.

Josh:
On morals over time and this this could be the wrong guess but i mean he's he's

Josh:
here saying basically the exact arguments that everyone's been arguing for a

Josh:
very long time it's like we don't trust a single monoculture to handle this

Josh:
we don't believe that the future of humanity is going to be

Josh:
best served by two to three companies we we don't believe that any company who

Josh:
thinks that ai will eliminate most jobs would rush to build it faster than anyone

Josh:
else and these are the arguments that we've heard for a really long time and

Josh:
we just get these echoed over and over again

Josh:
as the company starts to fit more of this mold i mean the essay was interesting

Josh:
what i will be most interested in is just seeing what the actual downstream effects are of

Josh:
these new essays and like hopefully it seems like zuck is getting more confident

Josh:
that they're going to figure this out that they're going to actually be releasing

Josh:
models that can meaningfully

Josh:
shift the way people engage with ai and this is probably like the starting gun

Josh:
he's like hey new era new company new ethos we're going to start running with

Josh:
this and see how it goes and so far it looks like they're kind of on their way

Josh:
like things are pretty good i was looking at

Josh:
Muse glimmer and i actually i want to try this one so my plan is to install

Josh:
this on my local machine today and give it a go

Josh:
because one of the things that is unique about this one is for people who are

Josh:
still using open claw remember that thing um this actually is a very agentic

Josh:
model that runs end-to-end for task completion

Josh:
it uses agents it has tool use it has multi-step reasoning it has multimodal

Josh:
input and output it seems like a really strong and powerful model yeah we could

Josh:
see here kind of how good it is at creating visuals, how good it is in benchmarks.

Josh:
And it's an actually usable model in a way that I don't think a lot of these

Josh:
others have been. So I'm taking this 14 page paper with a grain of salt. I...

Josh:
Read some of it. I didn't get my way through all of it. EJS,

Josh:
I know you said you read the entire thing.

Josh:
I'm excited for Meta. I want them to win. So I'm hoping this is the new starting

Josh:
point for them to release better models, to really get back in the game,

Josh:
to compete. Because, I mean, yeah, duopolies are less than ideal.

Josh:
We want a lot of people competing for a lot of different parts of the pie.

Josh:
And if Meta is going to come out here and do it and do so open source,

Josh:
that's great. And you got to imagine Jensen sitting over here pretty happy too, Mr.

Josh:
Open Source King, that now there's another company in the running for making

Josh:
really compelling open source models in the United States.

Ejaaz:
I think it's actions over words, though. Zuck has talked this talk for a while, you're right.

Ejaaz:
But he's also the guy that's releasing like the frontier open source models in America.

Ejaaz:
You see all the other AI labs. Look, I'll give you an example here.

Ejaaz:
Satya Nadella, bunch of people signed that they're in favor of open source and

Ejaaz:
open weight movements in general, but they haven't released any frontier open models themselves. So

Ejaaz:
I look at actions over words and Zuck, yeah, he's flailed around quite a bit.

Ejaaz:
And I've been a big critique of that, but he's come back.

Ejaaz:
And I'm going to judge him by his actions going forwards and we'll see what

Ejaaz:
he actually uses this for.

Ejaaz:
Now, the bad case for this is this is like an old school business move that

Ejaaz:
he's making, which is let's flood the market with intelligence that is basically free.

Ejaaz:
So we commoditize the paid subscriptions that other frontier labs are paying for.

Ejaaz:
And that brings down their value, that brings down their profit margins,

Ejaaz:
their revenue, and it allows Meta more time to catch up. Now,

Ejaaz:
is this a costly and risky endeavor? Yes.

Ejaaz:
Meta has burned, what is it, like $30 billion in acquiring 150 staff to produce

Ejaaz:
a model that is sub-frontier. If you were a shareholder, you're probably looking

Ejaaz:
at this and thinking, Zuck, what are you doing?

Ejaaz:
But if you look at what he's been investing in outside of that.

Ejaaz:
I think he's on track to spend, I think, $210 billion this year through the

Ejaaz:
first half of next year on Datacenter CapEx.

Ejaaz:
He is one of the largest holders of NVIDIA GPUs. He's secured like one of the

Ejaaz:
largest arsenals of NVIDIA Rubins, which is their next-gen GPU architecture.

Ejaaz:
Second only to Elon Musk, you have to question, okay, what's he going to use

Ejaaz:
all of this compute for? Well, he could rent it out, which is what SpaceX is

Ejaaz:
doing and make a bag from that.

Ejaaz:
But he's also probably going to train a bunch of frontier models.

Ejaaz:
And the biggest signal for whether he's actually going to be able to pull this

Ejaaz:
off is model release cadence.

Ejaaz:
And in the last, I think 90 days, he's released two models, but he's going to

Ejaaz:
release another two more over the next, I think it's like one to two months.

Ejaaz:
I think you mentioned in some tweet thread, Elon Musk is planning to do the same.

Ejaaz:
So I'm seeing this trend where the companies that, even though they're a little

Ejaaz:
bit behind in frontier intelligence, who have the most compute,

Ejaaz:
who have the most capital, are still able to kind of ship models iteratively

Ejaaz:
and maybe respond to the market quicker than some of these other frontier labs. Now,

Ejaaz:
I appreciate that that's optimistic thinking, but I do think Zuck is back in

Ejaaz:
the game and I'm excited to see what these models are like. I want to play around

Ejaaz:
with this Muse Spark 1.2 and this new one that I can run on my laptop and see

Ejaaz:
what fun things we can come up with.

Josh:
Yeah, I was trying to unpack the reasoning. I'm like, okay, why did he make

Josh:
this pivot again? It seems like there's so much uncertainty in the strategy of meta so far.

Josh:
And there really does appear to be some pretty compelling reasons that are kind

Josh:
of underlying this decision.

Josh:
Because when you think about meta the company i was like okay what does meta

Josh:
actually do meta is just an attention salesman

Josh:
their biggest part of the business is advertising and sales through that

Josh:
all their services are mostly free to use you can pay for a blue check mark if you want

Josh:
but most their users are free and they have this tremendous user base so they

Josh:
can sell a subscription to those people but those people are not used to and

Josh:
not very probably likely excited to pay

Josh:
twenty dollars a month to use an ai system that can be offered for free because

Josh:
you have to assume the average user doesn't need frontier class intelligence

Josh:
so if the model is attention

Josh:
And if you can improve your core business through AI, then that's probably what

Josh:
they want to do. And that's probably why open source makes sense.

Josh:
I mean, yeah, meta already announced it wants to use your AI chats to personalize the ads

Josh:
and it wants you to use the AI to build a large profile on you, to build

Josh:
a josh.md, an ejaz.md that has all of our preferences, all the things we care

Josh:
about, that gets updated in real time, and that has an increasing amount of

Josh:
ways in which you can collect context on you.

Josh:
And if you are trying to do this then you really just want these models to be

Josh:
free and accessible and open to collect as much data as possible to feel like

Josh:
there is no friction to getting in the game and then also just to kind of like just chip away at the

Josh:
the frontier labs margins where if there's someone who is deciding between a

Josh:
20 model or just going into their instagram app and using this cool new chatbot

Josh:
that they have like chances are a lot of people are going to choose to use the

Josh:
chatbot and that puts them

Josh:
in a way i guess it's kind of unique to them where they're they're competing

Josh:
on edge inference in a way somewhat with apple and what they will be doing with

Josh:
the new siri but they're also competing with google in the ads business if

Josh:
they're going to have just as much if not more data than google has

Josh:
When it comes to search queries and like think about how custom the advertising

Josh:
can be and not even advertising but content creation in general if meta understands

Josh:
what type of content you like how you engage with certain types of content it

Josh:
can serve this very custom profile that allows custom generated content just

Josh:
for you all in the effort of selling you more ads.

Josh:
And I think this is the reality of Meta is as they've tried to pivot to hardware,

Josh:
they've done all these other exploratory things.

Josh:
It still just comes down to the core business is selling people ads.

Josh:
And it's like understanding who their user is, pairing them with a seller and

Josh:
collecting commission off of those sales.

Josh:
And I think this is probably just a natural extension of that.

Josh:
And they're going to continue to make these products more compelling and more

Josh:
capable through these very lightweight AI models.

Ejaaz:
At the end of the day, Meta is obviously a for-profit company.

Ejaaz:
They're trying to make money and ads, as you said, is like their main business.

Ejaaz:
So, you know, they're definitely going to focus on that.

Ejaaz:
But I also think in the wider market of AI, a bunch of things have shifted recently

Ejaaz:
that we just can't ignore.

Ejaaz:
The first one being, you don't need the most intelligent model to do anything

Ejaaz:
and everything for you. I was catching up with a friend who is pretty high up

Ejaaz:
at a top, I would say, Fortune 100 company.

Ejaaz:
And I asked him, like, you know, how are you using AI these days?

Ejaaz:
Like, do you use private models? Do you use the standard models from Anthropic and OpenAI?

Ejaaz:
And he said, I've shifted completely to some of these open source models,

Ejaaz:
as well as just cheaper models in general.

Ejaaz:
And I get it to do the bulk of my work whilst I use Accord or GPT 5.6 to brainstorm

Ejaaz:
kind of like the architecture of what I want to build.

Ejaaz:
And I'm seeing this pattern reflected across a number of different enterprises.

Ejaaz:
It's certainly been reported across social media like every single day.

Ejaaz:
We're seeing the shift of companies thinking, I'm not going to just needlessly

Ejaaz:
spend a bunch of money on frontier intelligence. I certainly will for some things,

Ejaaz:
but I want to explore some of the cheaper options, right? And you can look at

Ejaaz:
the business models of the frontier labs themselves, right?

Ejaaz:
I think over the last 90 days, eight models have been released,

Ejaaz:
three of them alone from OpenAI, right? Why didn't they just release GPT-5.6

Ejaaz:
Sol? Why did they release Luna? Why did they release Terra?

Ejaaz:
Why did they slash the price of Luna by 80% a month ago? Why did Anthropic yesterday,

Ejaaz:
I think, announce that they're going to keep Claude Sonnet, I believe,

Ejaaz:
at the cheapest price ever indefinitely.

Ejaaz:
I think these companies are realizing that cheaper models are definitely applicable

Ejaaz:
and have an advantageous incentive for the customers that they're trying to

Ejaaz:
sell to, whether it's enterprises or consumer customers.

Ejaaz:
And you need more bang for your buck. Zuck realizes this, and he's seizing the

Ejaaz:
opportunity, but he's being more aggressive with the open source side of things.

Ejaaz:
And I think Zuck has enough capital at Meta to be able to keep this train going

Ejaaz:
for a while now. So I'm interested to see how what meta and specifically SpaceX

Ejaaz:
looks like over the next couple of months.

Ejaaz:
I think SpaceX is also teasing their next model and they've released like two

Ejaaz:
over the last like three weeks today, which should hopefully be releasing.

Ejaaz:
But yeah, I think there's something that

Ejaaz:
they're going to pull off something cool.

Josh:
Yeah i'm looking forward to it i'm looking forward to all the agents that they're

Josh:
going to spawn from these new models because if you are working with agents

Josh:
you know you know who we got to talk about and that's ledger our sponsor of

Josh:
this episode um because they have this infrastructure for agents in which it's kind of three parts

Josh:
agents propose then the human approves and then

Josh:
the ledger signer enforces the ledger signer is this mostly comes in the form

Josh:
of a hardware wallet in which you can approve or deny we talk a lot about security

Josh:
and how a lot of these agents can kind of go rogue and do things you may not want

Josh:
ledger offers an agent stack which is a series of open source tools that allows you to

Josh:
evaluate what these agents are doing across the way you could tell it to do

Josh:
things like rebalance your wallet

Josh:
or adjust whatever parameters you want to adjust and then it will propose you

Josh:
approve and the ledger signer enforces it works with cloud code

Josh:
codex all of the places that you work with ai on a daily basis so thank you

Josh:
so much to ledger for sponsoring this part of the episode you can get their

Josh:
products at the link in the description below.

Josh:
EJS, you mentioned capex spend, or you actually didn't mention capex spend.

Josh:
You mentioned strong earnings, but I'm going to mention capex spend,

Josh:
which is their free cashflow.

Josh:
Like we have to talk about the earnings quickly because like we do want to get

Josh:
a little bit economic here. Like how viable is this strategy?

Josh:
Their free cashflow this year, which means basically the money that comes in

Josh:
and out is down 91% year over year.

Josh:
They're spending, They're spending big on a few key pillars.

Josh:
One of them is this open source bet, which does not have an immediate ROI because,

Josh:
I mean, again, they're offering these weights for free.

Josh:
The other is on their hardware platform. One of the things that is like still

Josh:
shocking to me, and I'm not sure that many people know about this,

Josh:
Meta owns 70 to 80% of the entire AI glasses market.

Josh:
And this is not a big market, but this is a market that is meaningful and that

Josh:
probably shouldn't be overlooked.

Josh:
This is done exclusively with a company named Luxottica. Together,

Josh:
they have more than tripled Meta's AI glasses sales just in the year of 2025.

Josh:
We haven't gotten 2026 numbers yet, but like that is kind of noteworthy it's interesting to see the

Josh:
floor of the capex guidance being raised too in 2026 meta is guiding for 145

Josh:
billion dollars of spend which is just this like unfathomably large number

Josh:
and when you think about the places that it's going to land well it's certainly

Josh:
open source it's certainly hardware but like what else are they really just

Josh:
going to go all in on building out data centers and gpus to make larger models is that

Josh:
is that the end game? Because I don't see them competing on the frontier.

Josh:
So do they really need that much compute in order to compete for open source, open weight models?

Ejaaz:
I think so. I think the number one factor that determines how good your AI offering is, is compute.

Ejaaz:
At the end of the day, Elon's going to prove that with SpaceX.

Ejaaz:
And I think Zuck is planning to do the same thing.

Ejaaz:
We saw NVIDIA or Jensen Huang announced yesterday that he secured an additional

Ejaaz:
$500 billion of revenue and capital investment for future compute.

Ejaaz:
We see OpenAI partnering with NVIDIA for a similar amount, half a trillion dollars.

Ejaaz:
You see Anthropic securing deals with Riot yesterday with an old cryptographic

Ejaaz:
mining company to secure even more compute.

Ejaaz:
Compute is the ultimate indicator on whether you can create a better model.

Ejaaz:
It is the one thing that is consistent across all competitors in the AI race.

Ejaaz:
And I think Zuck believes if he amasses enough of it, if he secures enough allocation

Ejaaz:
of frontier NVIDIA GPUs, he'll be able to pull off and build better models.

Ejaaz:
Now, whether the open source strategy plays out, again, it's that strategy that

Ejaaz:
I think I mentioned earlier, which is flood the market with commoditized intelligence,

Ejaaz:
cut down or cut into revenue and margins of your competitors.

Ejaaz:
Yeah, Meta's CapEx takes a beating in the short term, but hopefully that plays

Ejaaz:
better in the long term when you have personalized agents that all run on Meta's

Ejaaz:
infrastructure and consumer apps.

Ejaaz:
Also, remember, Meta has like 4 billion consumers right now.

Ejaaz:
I was scrolling on Reels yesterday, which I don't like to admit,

Ejaaz:
but a ton of them are now Meta glasses.

Ejaaz:
I don't know if you've seen this, Josh, but it's this POV from a bunch of different people.

Ejaaz:
And I think that they don't have the best hardware, but they have one of the

Ejaaz:
most amazing distributions ever. I think 4 billion, and then you compare that

Ejaaz:
to Apple, which has, I think, 3.5 billion live Apple devices right now.

Ejaaz:
It's probably a lot more. I think that data is outdated.

Ejaaz:
They have a real competing moat here. And I look at Google, who has recently

Ejaaz:
gone into negative cash flow. Meta isn't quite there yet.

Ejaaz:
So you could argue that they're being somewhat conservative.

Ejaaz:
They have other businesses that are earning a ton of money that can support this for a while, but,

Ejaaz:
They don't have infinite runway. And, you know, maybe we'll see Meta raising

Ejaaz:
external capital similar to how Intel and Google has over the last couple of

Ejaaz:
months. I don't know. We'll see.

Josh:
Yeah. And I was going to ask the question whether or not this CapEx spend is

Josh:
existential. Like what happens if they fail again?

Josh:
Because this isn't their first time trying to get a frontier model that works

Josh:
really well and the first time did not go as planned. And then I was thinking, well, you know what?

Josh:
At least they have the GPUs and they could just go resell those and make a great business out of it.

Josh:
So there's this really weird part of the market now where it's very advantageous

Josh:
to just spend money on building data centers. And even if you can't figure out

Josh:
how to use them yourself, you just sell them off to the next best guy and you

Josh:
can make a tremendous amount of money from that infrastructure build out.

Josh:
So I think at the very least, you could find a lot of solace in that idea in

Josh:
terms of users. Like that's a great point that, I mean, 4 billion users is half of the planet.

Josh:
There's not many companies in the world that I'm not sure if there's any companies

Josh:
in the world with that quite as many users as meta, or there's a very small handful of them.

Josh:
So if they're able to figure out how to, I mean, weaponize is like a terrible

Josh:
word for this, but like able to leverage their AI tools to further create compelling

Josh:
offerings on their social media platforms, like that's a pretty big value unlock.

Josh:
So I'm excited. I'm cautiously optimistic on meta.

Josh:
Like I'm still looking for signals that they are going to figure it out.

Josh:
But like you mentioned, when you're watching reels, a lot of it are coming from

Josh:
the glasses. It's this novel form of creating content. It's this cool new paradigm

Josh:
that every other company is working for. And right now, I mean,

Josh:
say what you want, like they are in the lead.

Josh:
It's maybe not the best piece of hardware in the world, but they have the best one available.

Josh:
And we'll see what happens with the company. But that's kind of the update.

Josh:
Meta is going open source again. The boys are back and they are spending a lot

Josh:
of money and they are very clearly hellbent on making the best open source models

Josh:
that they can and implementing them.

Josh:
Across the entire product stack while continuing to iterate on their hardware

Josh:
products and weird science projects like remember the the pupil dilation tracker

Josh:
and like the this brainwave scanner that they're using to like understand how content affects you and

Josh:
it's going to be a weird future with meta but they're working on it nonetheless

Josh:
full speed ahead and um yeah we'll just continue to cover it as we go along this journey here

Ejaaz:
Also i will just say this if you're listening to this episode and you are a

Ejaaz:
builder, there has never been a better time to be alive.

Ejaaz:
Like all these tools, all these models, all these products that are being released

Ejaaz:
over the last couple of months that are being increased in frequency are all

Ejaaz:
for you to trial test out.

Ejaaz:
If it's too expensive for you to buy a Claude Mac subscription,

Ejaaz:
play around with some of these open source models. If you don't think that the

Ejaaz:
American frontier open source models are good enough, play around with some

Ejaaz:
of these open weight or open source Chinese models.

Ejaaz:
There is no excuse to not be using these things.

Ejaaz:
If you have access to it, if you have a project or a hobby or an idea in your

Ejaaz:
mind, go out there, try these things that we're talking about and honestly give

Ejaaz:
us feedback because we'd love to hear from builders to see what you guys are

Ejaaz:
actually doing with the thing.

Ejaaz:
Maybe we're missing something and maybe you can kind of like shine a light on

Ejaaz:
something that we're completely missing.

Ejaaz:
But we will be covering anything and everything on Limitless going forwards.

Ejaaz:
That is the end of this episode. You're all caught up on all of things meta

Ejaaz:
related. They've done a pivot.

Ejaaz:
They've turned it around and I'm excited to see where the company is in a couple months' time.

Ejaaz:
That being said, wherever you're listening to us, if it's on YouTube and you

Ejaaz:
aren't subscribed, if the notifications aren't turned on, please do so.

Ejaaz:
It helps us out massively.

Ejaaz:
If you haven't left us a comment on Spotify, Apple Music, or even YouTube as

Ejaaz:
well, please do so. We have been loving the comments, by the way. I think we've

Ejaaz:
gotten in the in the realm of like i don't know it's like a thousand two thousand

Ejaaz:
plus comments over the last like five episodes keep them coming we love hearing

Ejaaz:
from you guys we respond to anything and everything,

Ejaaz:
as soon as we have like free time available um and then yeah we have a newsletter

Ejaaz:
that goes out to over a hundred thousand of you we post twice a week i think

Ejaaz:
this week we getting three times because josh and i can't keep our gobs shut

Ejaaz:
but um josh anything anything well and most.

Josh:
Most of all don't forget to gift this to a friend if there's someone else who

Josh:
you know that would benefit from watching this every single day who wakes up

Josh:
in the morning goes up with a little walk for their dog or like on their morning

Josh:
commute that wants something to listen to 25 minutes long that will get sometimes

Josh:
a little bit longer but that will get them up to speed on everything like

Josh:
it's always much appreciated it's how we grow the best so as always thank you

Josh:
so much for making it to the end of the episode real ones only here at the conclusion

Josh:
thank you for watching and we will see you in the next episode