From Llamas to Avocados: Meta's shifting AI strategy is causing internal confusion (www.cnbc.com)

Meta is pivoting its AI strategy by developing a new proprietary model, codenamed Avocado, which could mark a shift from its previously open-source approach with the Llama models. The move comes as the company faces increasing competition from AI giants like OpenAI and Google, following significant investments, including a $14.3 billion recruitment campaign aimed at attracting top talent from the industry. Insiders indicate that while there were initial expectations for a 2025 release for Avocado, its launch may now be pushed to early 2026 as the model undergoes performance testing. This strategic transition highlights the internal confusion at Meta, as CEO Mark Zuckerberg balances ambitions for revolutionary AI advancements with ongoing challenges in its core advertising business. The new direction, favouring proprietary models, raises important implications for the AI landscape, particularly as other tech companies capitalize on closed models. Analysts suggest that this change is crucial for regaining competitive momentum, especially amid internal restructuring and increasing pressure on new leadership to deliver standout products that can compete effectively with the latest offerings from rivals.