Meta shares edge higher; could DeepSeek have violated Meta's policies?

Investing.com -- Shares of Meta Platforms ticked up 0.6% as the market responded to commentary from Stifel analyst Mark Kelley. The slight increase in stock price follows Kelley's insights on the potential implications of Meta's open source models, specifically regarding the Llama models and their use by DeepSeek.

Kelley highlighted reports that DeepSeek refined its technology using Meta's Llama models, which could be a policy violation. Meta's current policy allows free use of these models until an application or project reaches 700 million monthly active users (MAUs). While Kelley views this threshold as substantial, he suggests that Meta might consider lowering the MAU limit to start explicit monetization, though he acknowledges this is speculative and likely a distant possibility.

The analyst also pointed out that the rapid development at DeepSeek underscores the effectiveness of open source models, which could lead to quicker deployment of future and existing models. He concluded that this represents a positive development for Meta, saying, "We view this is a positive development for Meta."

Investors seem to have taken note of these comments, with the modest uptick in Meta's stock suggesting a measured acknowledgment of the potential benefits from the open-source approach. The market's reaction indicates an appreciation for the strategic advantages that Meta could harness from a more aggressive stance on monetization and the accelerated pace of innovation that open source models might bring.

As the discussion on open source models and their impact on Meta's policies continues, investors will likely keep a close watch on how the company navigates these developments and their potential to drive user growth and revenue.

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