Hard to see how can Mistral compete with Meta, they have order of magnitude less compute, their models are only slightly better (at least on the benchmarks) with less permissive licenses?
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I don't quite follow your argument - what exactly is Meta competing for? It doesn't sell access to a hosted models and shows no interest of being involved in the cloud business. My guess is Meta is driven by enabling wider adoption of AI, and their bet is more (AI-generated) content is good for its existing content-hosting-and-ad-selling business, and good for it's aspirational Metaverse business too, should it pan out.