Meta is trying to win the AI race. A new partnership with AWS could help
Now, Meta is teaming up with Amazon's cloud computing unit, Amazon Web Services, on an initiative designed to do just that.
The program will provide six months of technical support from both companies' engineers and $200,000 in AWS cloud computing credits each to 30 US startups looking to build AI tools on Meta's Llama AI model. The partnership is set to be unveiled at AWS Summit in New York City on Wednesday.
For Meta, the project could be a boost at a time when CEO Mark Zuckerberg is pouring enormous resources into his ambition to become a top player in the AI space. The company last month announced the creation of a new AI super intelligence team, after recruiting leading researchers away from competitors with massive pay packages. Meta also invested $14.3 billion into AI startup Scale, which included the hiring of its founder and CEO, Alexandr Wang, and several other top employees.
And Amazon's investment, worth more than $6 million in total, could pay off if the startups continue using AWS's service to access the AI system after the six months. While Amazon has its own large language models, AWS's AI strategy has been to help companies access any model — or multiple — along with the intense computing power needed to run them.
Early-stage startups can apply to the program and will be selected later this summer based on the 'potential impact of the proposed solutions and the technical ability' of their teams, AWS and Meta said in a statement.
'We have a long-standing relationship and partnership with Meta, and what we're aiming to do here with the Llama collaboration is really empower founders to build transformative AI using Llama models,' AWS Vice President and Global Head of Startups and Venture Capital Jon Jones told CNN exclusively ahead of the announcement.
He added that AWS customers are already using Llama to, for example, create AI customer relationship management tools for auto dealerships or financial technology tools.
At the heart of the Meta-AWS partnership is a push to support Llama, a leading open-source AI model, meaning the code behind the technology is publicly available — unlike proprietary or 'closed-source' models like OpenAI's ChatGPT and Anthropic's Claude.
There's an industry debate over the benefits of open versus closed-source AI models. It goes something like this: Companies on Team Closed Source say they'll retain more control over how their technology is used, and it's a whole lot easier to build a business when your rivals don't know exactly how your systems work. Team Open Source says potentially transformative AI technology should be available for anyone to use and build on to democratize its benefits.
Zuckerberg said last year that he believes 'open source is necessary for a positive AI future.' He added that his model will help open source become 'the industry standard,' since third parties have free access to build on the technology.
In other words, Zuckerberg would like his technology to become the leading platform for developers building chatbots, agents and other AI apps, similar to how Apple and Google's operating systems have functioned in the mobile web era.
But for startups looking to build on a large AI model, going the closed-source route can have practical benefits — when they pay to access the technology, they may also get a friendly user interface, tech support and a more personalized experience.
With their partnership, AWS and Meta hope to provide some of those same benefits to startups building on Llama. And given the significant cost of computing power for AI systems, the AWS credits could be a boon to startups that don't expect to turn a profit immediately.
'We developed Llama because we believe greater access to powerful models is essential for driving progress in AI,' Ash Jhaveri, vice president of AI partnerships at Meta, said in a statement about the initiative. 'Startups are some of the most creative forces in tech, and we're looking forward to seeing how they'll use Llama to push boundaries, explore new frontiers, and shape the future of AI in bold and unexpected ways.'
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Trending tickers: latest investor updates on Nvidia, Sarepta, Spotify, AstraZeneca and Greggs
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32 minutes ago
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AstraZeneca (AZN.L) Shares in AstraZeneca rose in London trading on Tuesday after the UK's largest listed company by market value reported stronger-than-expected second-quarter earnings and reaffirmed its full-year outlook. The pharmaceutical group posted an 11% rise in revenues to $14.46bn for the three months to the end of June, surpassing analyst expectations of $14.15bn, according to a company-compiled consensus. Core earnings per share came in at $2.17, just above forecasts of $2.16. "Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent," CEO Pascal Soriot said in a statement. Pre-tax profit for the period rose to $3.1bn from $2.4bn a year earlier, as AstraZeneca saw strong performance across key therapeutic areas, including an 18% rise in oncology sales. The FTSE 100 (^FTSE) drugmaker, which derives 44% of its revenue from the US, is also ramping up investment in the country. Last week, it pledged to invest $50bn in the US by 2030, joining a wave of multinational pharmaceutical firms positioning themselves ahead of the potential imposition of tariffs on the sector by US president Donald Trump. Sheena Berry, healthcare analyst at Quilter Cheviot, said: 'AstraZeneca continues to deliver strong growth, with its second quarter results showing solid rises in product sales, up 10% overall. "This was primarily driven by 18% growth seen from the oncology portfolio, which has done well as a result of key drugs such as Imfinzi, Tagrisso and Enhertu. The group shows no sign of slowing down either with research and development spend increasing 18% in the quarter. Read more: Stocks to watch this week: Microsoft, Apple, Shell, AstraZeneca and HSBC 'For now, 2025's guidance has been reiterated with sales expected to increase by high single-digits and core earnings to grow by low double-digits. This remains a catalyst-rich period for the group with multiple positive phase III readouts and drug approvals in 2025 to date. "The main pipeline update included in the results is the Avanzar lung cancer trial readout, which is now expected in the first half of 2026, rather than later this year as was expected. However, the long-term outlook remains attractive with the group making progress towards its target of $80bn in total revenue by 2030.' Greggs (GRG.L) Shares were down by 3% as Greggs reported a 14% drop in pre-tax profit for the first half of the year, as winter storms and summer heatwaves kept customers away from its high street shops, adding to an already challenging consumer environment. The bakery chain, known for its sausage rolls and steak bakes, said profits fell to £63.5m in the six months to the end of June, down from £74.1m a year earlier. While total sales rose 7% to £1.03bn, the increase was not enough to offset a decline in margins and footfall. Company-managed shop like-for-like sales rose 2.6%, while franchised locations grew 4.8%. Greggs, which operates more than 2,600 stores across the UK, said the decline in profits 'reflected challenging market footfall and the phasing of cost headwinds that have particularly impacted the first half of the year.' 'These challenges were compounded by heavy snow and strong winds in January and unusually hot weather in June, which had a material impact on consumer behaviour and lowered like-for-like sales,' the company said. More than 200 shops in Scotland and Wales were temporarily closed during Storm Éowyn in late January, when a rare red warning was issued due to hurricane-force winds, heavy rain, and snow. Cost inflation was also a factor, with overall cost pressures running at 5.4% in the first half. Full-year cost inflation is expected to be around 6%. Greggs spent £3m on expanding manufacturing, logistics, and technology capabilities, and completed 108 shop refurbishments, up from 81 a year earlier. Chief executive Roisin Currie described the first half as a 'challenging market' with weak consumer confidence. 'People are saving, not spending,' she said. The interim dividend was held steady at 19p. While full-year sales are expected to remain resilient, profits are forecast to come in 'modestly below the level achieved in 2024.' Mark Crouch, market analyst at eToro, said: 'Greggs' 14% drop in first-half profit caps a bitter 10 months for the UKs favourite baker. "Management blames hot weather for weaker sales, but that doesn't account for a 50% collapse in market value. The more plausible culprit is the timing of Greggs expansion strategy, stretching margins, just as the consumer picture turns more fragile. 'Greggs has long been a reliable read on the UK high street. Its sudden stumble suggests consumers may not just be cooling on sausage rolls, but that appetite across the high street may be waning more broadly. "With inflation easing and real wages recovering, the macro backdrop should, in theory, be supportive. That it isn't showing up in Greggs' numbers, is a red flag. 'Greggs' brand still holds a strong place in the market, but scale isn't helping if margins and volumes can't keep up. The pressure is now squarely on management to regain the initiative, and not just blame it on the weather.'
