Model License Terms 2023 Defined Commercial Boundaries for LLaMA 2

In 2023, a few pages of licensing text determined which companies could legally deploy a 70 billion parameter model.

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🤯 Did You Know (click to read)

Meta’s LLaMA 2 license specifies additional permission requirements for services exceeding 700 million monthly active users.

When Meta released LLaMA 2 in July 2023, it accompanied the model with a custom commercial license. The agreement permitted both research and commercial use under defined conditions. One notable clause restricted use by companies with more than 700 million monthly active users without separate permission. This provision distinguished LLaMA 2 from fully permissive open-source licenses such as MIT or Apache. Legal teams scrutinized the document to assess compliance risk. The license also required adherence to acceptable use policies addressing harmful applications. By formalizing boundaries, Meta attempted to balance openness with platform control. The licensing framework became as strategically significant as the model architecture itself. Deployment was governed not only by compute but by contract.

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💥 Impact (click to read)

Institutionally, license constraints shaped competitive positioning. Large technology platforms evaluated whether usage thresholds limited integration. Startups gained relative flexibility under the monthly active user cap. Procurement departments incorporated license review into AI adoption checklists. Venture investors examined whether license ambiguity could affect exit valuations. The distinction between open-weight and open-source became legally material. Contract language influenced market structure.

For developers, the license determined whether experimentation could evolve into production. Some organizations sought legal counsel before launching AI features. Independent researchers navigated acceptable use clauses when publishing derivatives. The legal scaffolding surrounding LLaMA underscored that artificial intelligence now sits within corporate governance frameworks. Innovation moved through approval workflows. A model’s freedom was defined in paragraphs.

Source

Meta LLaMA 2 Community License Agreement 2023

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