Meta's Spark 1.3 nears frontier and its scorched-earth pricing may threaten AI labs, argues investor
RihardJarc · x · 2026-09-03
Investor RihardJarc argues Meta has closed its frontier gap: Spark 1.3 shipped just a month after 1.2 and rivals frontier models, with the bigger 'Watermelon' model expected within a month. Meta can afford scorched-earth pricing (50% margin vs labs' 80%) given surplus compute, and switching internal usage from Anthropic/OpenAI — one of its biggest token bills — would hit both rivals. At 18x P/E, the market prices near-zero odds of Meta being a frontier lab, which he sees as a mispricing.
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