Meta Platforms Inc (NASDAQ:META) has delayed the planned launch of a new artificial intelligence model after internal testing showed it did not meet the performance level of top AI systems developed by competitors, according to people familiar with the situation.
The model, developed under the internal code name Avocado, represents a step forward compared with Meta's previous AI efforts. However, those familiar with the matter say its performance falls short of that achieved by a rival model, Gemini 3.0, which was introduced in November.
As a result, Meta has moved Avocado's release date out to at least May 2026. The company is also considering a temporary licensing arrangement to use the competing model to power its AI features in the near term while it continues development on Avocado.
Meta's investments in AI have been large and sustained. Company executives have built out both talent and computing capacity to support their ambitions in the field, and in January they indicated the business could spend as much as $135 billion on AI this year. Company officials have also committed hundreds of billions in recent years toward model development, talent acquisitions, and the infrastructure needed to run advanced AI workloads.
Separately, automated stock-picking tools and portfolio strategies are actively evaluating major AI-focused companies. One AI-driven strategy referenced evaluations of Alphabet Inc (GOOGL), noting that systematic models can screen thousands of companies across financial and momentum metrics to identify opportunities. That commentary highlights the level of attention being paid to the competitive landscape among major technology firms as they race to deploy new AI capabilities.
Meta's decision to delay Avocado underscores the competitive dynamics within the AI sector, where firms are measuring outcomes against rival systems and weighing near-term product options, including temporary third-party licensing, to maintain service continuity.
Note: This report is based on accounts from people familiar with the matter and on statements about the company's previously announced AI spending plans.