From "Llama" to "Avocado": Meta's Shifting AI Strategy Sparks Internal Turmoil

Deep News12-09

Key Points: Meta is developing a cutting-edge AI model codenamed "Avocado," which may adopt a proprietary rather than open-source approach, according to sources. This comes as the company invests $14.3 billion to recruit Scale AI's founder and top researchers to compete with rivals like OpenAI and Alphabet.

CEO Mark Zuckerberg had previously championed Meta's open-source "Llama" AI models, predicting they would become industry-leading. However, recent earnings calls show diminished emphasis on Llama, signaling a strategic pivot toward closed-model development to challenge competitors.

Internal sources reveal Meta's AI roadmap remains fragmented, with the "Avocado" model's launch delayed to Q1 2026 due to performance testing requirements. The company maintains its training schedule is on track despite these adjustments.

Strategic Shifts: - Meta's stock underperformance versus tech peers has intensified pressure to demonstrate AI ROI - $14.3 billion hiring spree brought Scale AI's Alexander Wang as Chief AI Officer - Capital expenditure guidance raised to $70-72 billion for 2025 - KeyBanc analysts note Meta has transitioned "from AI leader to facing ROI skepticism"

Core Challenges: 1. Digital Advertising Dominance: While AI-powered ad targeting drives 20%+ revenue growth, Zuckerberg seeks broader AI transformation beyond this cash cow. 2. Open-Source Dilemma: After Chinese firm DeepSeek utilized Llama's architecture, Meta increasingly views open-source as risky. The Avocado model will likely be proprietary. 3. Cultural Transformation: New leadership (including ex-GitHub CEO Nat Friedman) implements Silicon Valley's agile methodologies, disrupting Meta's traditional development processes.

Competitive Landscape: - Google's Gemini 3 receives positive reviews - OpenAI announces GPT-5 updates - Anthropic launches Claude Opus 4.5 - NVIDIA CEO Jensen Huang confirms supplying compute power to all major AI players except Meta's Llama

Operational Changes: - 600 layoffs at Meta Superintelligence Lab (MSL) - FAIR team departures including Chief AI Scientist Yann LeCun - "Demo over memos" philosophy accelerates development - $2.7 billion Hyperion data center project advances infrastructure plans

Zuckerberg remains committed to AI leadership, telling investors MSL has made a "strong start" with "the highest talent density in the industry." However, internal tensions persist between legacy teams and new leadership implementing radical workflow changes.

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