Meta Explores Google and OpenAI Partnerships to Boost AI Tools Ahead of Llama 5 Launch

Meta Platforms (META) is exploring partnerships with Google (GOOG) and OpenAI to enhance its AI tools. The company is testing outside models and building Llama 5, its next major model. Although talks with rivals are active, the outside deals are likely a short-term bridge. Meta is facing a competitive market in AI but has an edge with its open-source approach. Analysts have a Bullish sentiment among The Street's analysts with a Strong Buy consensus and an average stock price target of $872.48.

Meta Platforms (META) is actively exploring partnerships with Google (GOOG) and OpenAI to enhance its artificial intelligence (AI) tools. The company is currently testing external models while simultaneously developing its own advanced model, Llama 5. These strategic partnerships are seen as a short-term measure to bridge gaps in Meta's AI technology until its in-house models become competitive.

Meta's AI division, Meta Superintelligence Labs, is at the forefront of these discussions. The company is exploring the integration of Google's Gemini model to improve conversational text responses for its primary chatbot, Meta AI. Additionally, talks have been held about leveraging OpenAI's GPT models to further enhance its AI capabilities. These partnerships, if materialized, are expected to be temporary measures as Meta races to develop its next-generation model, Llama 5, to compete effectively in the AI landscape [1].

Meta has already adopted Anthropic models internally for coding support, demonstrating its commitment to leveraging various AI technologies. Meanwhile, the company is simultaneously ramping up its infrastructure investments. A $50 billion data center project in Louisiana, dubbed "Hyperion," is under development, which has sparked controversy due to Entergy Louisiana's proposal to pass $5 billion in power plant construction costs to 1.1 million customers. Despite this controversy, Meta's financial position remains robust, with $25.56 billion in operating cash flow, $8.55 billion in free cash flow, and $47.07 billion in cash and marketable securities for the quarter ended June 30, 2025 [2].

Analysts maintain a bullish outlook on Meta's AI prospects. Bank of America's Justin Post has identified Meta as one of the most compelling AI investments, citing its $14 billion stake in Scale AI and strong ad revenue growth [2]. As Meta continues to navigate the complex landscape of AI development and infrastructure expansion, the tech industry watches closely to see how these potential partnerships and investments will shape the future of artificial intelligence and Meta's position in the market.

References:
[1] https://theoutpost.ai/news-story/meta-explores-ai-partnerships-with-google-and-open-ai-amid-infrastructure-expansion-19723/
[2] https://www.tbsnews.net/worldbiz/usa/metas-ai-leaders-discuss-using-google-openai-models-apps-information-1223926