"The Riff" with Byrne Hobart and Erik Torenberg E41: Meta’s Open Source Strategy, Amazon’s Culture Drift, and What’s Going on With Character.AI
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Aug 15, 2024 
This week features the CEO of Character.AI, who joined the company after a stint at Google. They dive into Meta's innovative open source AI strategy and the benefits that come with it. The conversation also explores the changing dynamics between content providers and search engines, particularly Reddit's deal with Google and its implications for AI training data. Additionally, they discuss the Strategic Petroleum Reserve's role in economic stability, alongside the ethical challenges in business management and the competitive landscape of the AI sector.
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Meta's AI Advantage
- Meta's cost advantage in AI stems from their prior hardware investments for Reels targeting.
- This excess capacity, combined with their text analysis experience, positions them well in AI development.
AI Company Evolution
- AI companies may initially build full-stack solutions, including their own models.
- However, they might transition to using third-party models as general-purpose models become more powerful.
Content Access and AI
- Allowing free access to site content now contributes to competitors' data assets.
- This makes it harder for content creators to justify open access, especially with AI's growing substitution potential.