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

Mark Zuckerberg's initial enthusiasm for Meta's Llama AI models has dimmed significantly over the past year. Once hailed as the potential leader in AI technology, Llama has been mentioned only briefly in recent earnings calls, indicating a shift in focus for the tech giant. Instead of promoting its open-source models, Meta is now investing heavily in acquiring top-tier talent to compete with major players like OpenAI and Google. As 2025 approaches, internal sources suggest that Meta's AI strategy appears to be disorganized, leading to concerns about its competitive edge. The company is now working on a successor to Llama, codenamed Avocado, which was initially expected to launch by the end of this year but is now slated for the first quarter of 2026. Reports indicate that the new model is undergoing extensive performance testing to ensure a successful launch. Despite Meta's substantial investments, including a $14.3 billion hiring spree aimed at boosting its AI capabilities, the company's stock has lagged behind competitors. Analysts note that while Meta's ad revenues remain robust, the tech giant must adapt to the rapidly evolving AI landscape to secure its position. Historically, Meta's Llama models were notable for their open-source design, allowing external developers to access and enhance the technology. However, following challenges with the release of Llama 4, Zuckerberg hinted at a potential pivot to a more proprietary approach for future models like Avocado. Critics within the company have expressed dissatisfaction with the open-source strategy, advocating for a more powerful proprietary model. This internal conflict has led to significant leadership changes, including the hiring of industry veterans like Alexandr Wang from Scale AI, who now oversees AI initiatives at Meta. As the competition heats up, with rivals like Google and OpenAI releasing advanced AI models, Zuckerberg's team faces increasing pressure to deliver impactful innovations. The transformation in leadership and strategy reflects a broader shift in Meta's approach to AI, with new leaders advocating for faster development cycles and a departure from traditional methods. Amid these changes, Meta remains committed to its AI goals, with Zuckerberg recently stating that the company is building what he considers the industry's highest talent density. With the upcoming release of Avocado and ongoing updates to its AI products, Meta aims to reclaim its status in the competitive tech landscape.