The argument is that LLMs are a local maximum that will never breakthrough to AGI. This is still very much an open question. If you are the fifth-best AI lab, does it make sense to try to outcompete everyone in a space that is already too crowded and may not ever yield their actual objective? Instead they could just use open weight models in their products, or post-train on open models like smaller labs have done, and treat that as what it is: product development.
Pure research has always been about taking chances.
Meta’s AI projects are still negative ROIC