Meta Platforms Inc (NASDAQ:META) CEO Mark Zuckerberg revealed during the company's third quarter 2024 earnings call that Meta is developing its next-generation AI model, Llama 4, using what he described as an unprecedented computing infrastructure of more than 100,000 NVIDIA Corp (NASDAQ:NVDA) H100 GPUs.

What Happened: "We're training the Llama 4 models on a cluster that is bigger than 100,000 H100s or bigger than anything that I've seen reported for what others are doing," Zuckerberg said during the earnings call.

The new models are expected to be ready in early 2025, with smaller versions launching first.

Zuckerberg also highlighted how Meta's open-source approach to Llama is yielding benefits through chip optimization from major semiconductor manufacturers. "What we're seeing is that as Llama gets adopted more, you're seeing folks like NVIDIA and Advanced Micro Devices, Inc. (NASDAQ:AMD) optimize their chips more to run Llama specifically well, which clearly benefits us," he explained.

The Meta CEO drew parallels to the company's previous success with its Open Compute Project, noting that sharing technological designs led to industry standardization and cost savings. This strategy appears to be repeating with Llama, as chip manufacturers optimize their hardware specifically for the AI model.

The upcoming Llama 4 is expected to feature significant improvements over its predecessor, with Zuckerberg indicating it will be "a big deal on several fronts, new modalities, capabilities, stronger reasoning, and much faster."

Why It Matters: The development of Llama 4 is a significant step for Meta Platforms, especially given the company's recent strong financial performance. Meta Platforms reported third-quarter revenue of $40.59 billion, beating analyst estimates of $40.29 billion. The company also reported third-quarter adjusted earnings of $6.03 per share, surpassing analyst estimates of $5.25 per share.

Despite this, Meta Platforms has faced some internal challenges, including the recent firing of approximately two dozen employees, including one earning $400,000 per year, for violating the company's meal credit rules.

Price Action: Meta stock closed at $591.80, down 0.25% on Wednesday. In after-hours trading, the stock declined further, dropping 3.18%. Year to date, Meta has shown substantial growth, surging by 70.90%, according to data from Benzinga Pro.