Meta Delays Avocado AI Model to May, Shares Slide 3%
Meta Platforms delays launch of its next-generation AI model Avocado to May after internal tests showed it underperformed leading models in reasoning, coding and writing. The model outperformed Meta’s previous AI system and Google’s Gemini 2.5 but fell short versus Gemini 3.0 and triggered a 2–3% drop in Meta shares.
1. Launch Delay Details
Meta Platforms has pushed back the rollout of its new AI model, Avocado, to at least May after internal evaluations revealed it lagged rival systems in core tasks. The postponement reflects management’s aim to refine reasoning, coding and writing capabilities before a full launch.
2. Performance Comparison
Avocado demonstrated clear gains over Meta’s previous generation AI and outstripped Google’s Gemini 2.5 released in March. However, it failed to match the more advanced Gemini 3.0 introduced last November, leaving a performance gap versus top competitors.
3. Market Reaction and Strategic Options
Shares of Meta dipped by roughly 2–3% on the news of the delay, reflecting investor concern over AI leadership. Meta’s AI division is also exploring temporary licensing of Google’s Gemini technology to bolster product offerings if Avocado falls short of expectations.