The U.S. General Services Administration (GSA) launched a new initiative on Monday with Meta Platforms META to expand government-wide use of Meta’s open-source Llama artificial intelligence models, giving all federal agencies streamlined access. The move reflects the GSA’s OneGov strategy, eliminating the need for individual agency negotiations and reducing duplication across the federal government.
Meta has already worked with federal agencies and contractors on national security projects and even sent Llama into space aboard the International Space Station.
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By partnering with the GSA, Meta is helping accelerate the adoption of AI tools across government, advancing the goals outlined in America’s AI Action Plan and recent Office of Management and Budget directives on AI use and acquisition.
Unlike traditional agreements, this arrangement required no procurement process. Instead, the GSA verified that the models meet federal standards, ensuring secure, consistent, and scalable access.
The partnership will allow agencies to retain complete control over their data while building mission-specific AI solutions at lower cost.
Meta stock gained 33% year-to-date, topping the Nasdaq 100 index’s over 17% returns as its AI and metaverse bets gain traction. Analysts weighed in on Meta’s Connect 2025 product launches last week. Meta introduced the $499 Oakley Meta Vanguard for athletes and the $799 Ray-Ban Display smart glasses with built-in AR features. Investor Gene Munster called the latter the “best bang for the buck,” and analysts echoed optimism despite early adoption hurdles.
Bank of America Securities analyst Justin Post noted that after testing the Display glasses and Neural Band, he found them functional, lightweight, and intuitive. He said the AR device’s audio/visual capabilities and AI features strengthen his belief that AR glasses could emerge as the primary device of the AI era. He added that Meta’s expanding AI ads, ramping Reels, and growing messaging monetization keep revenue upside intact.
JPMorgan analyst Doug Anmuth argued that Meta’s strong ad business justifies investing in long-term bets like AI and the metaverse. Anmuth still models Reality Labs’ losses of about $19 billion in 2025 and $21 billion in 2026, with $71 billion in capex next year. He wrote that Meta’s ownership of the social graph, competitive moat, and focus on product quality position it as a durable blue chip. Anmuth said the company’s big spending signals a push to build infrastructure ahead of a multi-year capacity ramp, but he still projects solid revenue and EPS growth in 2026.
Price Action: Meta stock is trading higher by 0.47% to $782.89 at last check on Monday.
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