Meta Platforms (META) is exploring partnerships with Google (GOOG) and OpenAI to add stronger AI tools to its apps. According to a report from The Information, leaders at Meta’s new AI unit, Meta Superintelligence Labs, have spoken with Google about using its Gemini model. They have also held talks with OpenAI about licensing its models for Meta’s main chatbot and other features inside Facebook, Instagram, and WhatsApp.
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The company has already tested outside models for its staff. For example, Meta engineers can use Anthropic’s Claude model to assist with coding work. These steps show how Meta is open to outside help while it continues to improve its own Llama models.
Long-term plan with Llama 5
Although talks with rivals are active, Meta is also focused on building Llama 5, its next major model. The company wants Llama 5 to compete with Google’s Gemini and with the GPT line from OpenAI. Because these efforts will take time, the outside deals are likely a short-term bridge.
At the same time, Meta is investing billions in new data centers and cloud contracts; recently, it signed a $10 billion agreement with Google Cloud to supply servers and storage over a six-year period. This deal highlights how even rivals in AI are willing to work together on infrastructure when both sides gain from the scale.
Pressure in the market
Meta is facing a competitive market in the AI space. For instance, Microsoft (MSFT) has close ties with OpenAI, while Google is pushing Gemini across its products. Meta still has an edge with its open-source approach, as earlier Llama releases were made available to the broader research community. Still, the race to deliver better tools to users is driving the company to use every option.
As the year moves forward, Meta is expected to release its first products from the new lab. If it can deliver useful upgrades to its apps, the company could improve engagement while it builds toward the longer goal of leading in advanced models.
Is META Stock a Buy?
Meta continues to boast a Bullish sentiment among The Street’s analysts with a Strong Buy consensus. The average META stock price target stands at $872.48, implying an 18.11% upside from the current price.
