Meta's AI Shift from Llama to Avocado Sows Internal Uncertainty

Meta is pivoting its artificial intelligence strategy, moving away from the open-source Llama models to a new, proprietary AI model codenamed Avocado. This shift is causing internal confusion and raising questions about the company's direction in the competitive AI landscape.

Internal Confusion Over New AI Model

According to sources, Meta plans to release the Avocado model in the first quarter of 2026, despite earlier expectations for a 2025 debut. The delay is due to ongoing performance testing to ensure the system meets high standards. A Meta spokesperson states, 'Our model training efforts are going according to plan and have had no meaningful timing changes.'

Massive Investments and Shifting Priorities

Meta has invested heavily in AI, spending $14.3 billion to bring in top talent, including Scale AI founder Alexandr Wang and his team. This investment aims to help Meta compete with rivals like OpenAI and Google. However, the company's stock underperformance and increased capital expenditures have raised concerns among analysts.

Analysts' Perspectives

'In many ways, Meta has been the opposite of Alphabet, where it entered the year as an AI winner and now faces more questions around investment levels and ROI,' write analysts at KeyBanc Capital Markets. Despite these challenges, Meta's core business, digital advertising, continues to grow, driven by AI improvements and the popularity of Instagram.

CEO Zuckerberg's Vision

Mark Zuckerberg, Meta's CEO, emphasizes the need for big swings in AI to avoid becoming irrelevant. He previously predicted that the Llama models would become the most advanced in the industry, but recent earnings calls show a shift in focus. The new guard at Meta, brought in to push the future vision of AI, lacks a background in online ads, highlighting the company's broader ambitions.

Industry Context and Implications

As Meta navigates this transition, the company faces increasing pressure to deliver on its AI investments. The move from Llama to Avocado reflects a strategic shift towards proprietary technology, which could impact the broader AI ecosystem. Industry experts and insiders suggest that Meta's strategy remains scattershot, feeding the perception that the company has fallen behind its top AI rivals.

References

• From Llamas to Avocados: Meta's shifting AI strategy is causing internal confusion