Early Facebook executive Chamath Palihapitiya told Axios that Meta has "completely fumbled it" on generative AI, stating the company has "profoundly failed" and that a comeback is "pretty unlikely at this point." Palihapitiya argued Meta was positioned to be the "third leg of the stool" in the global AI hierarchy, which he said will consist of closed-source American models like OpenAI and low-cost, open-weight Chinese alternatives. He suggested that if Nvidia CEO Jensen Huang had possessed Zuckerberg's massive consumer distribution network, the tech industry would have a safer, more balanced AI ecosystem. Palihapitiya now predicts a market dominated by closed-source winners, cheap foreign alternatives, and a decentralized "Rebel Alliance" of distributed computing, leaving Meta on the sidelines. Meta Platforms shares were down 6.74% year-to-date, up 3.81% over the last month, and lower by 14.31% over the year, closing 2.55% higher at $615.58 per share on Tuesday.