Meta, which has spent billions pursuing a leadership position in artificial intelligence, is now poised for a major strategic shift. According to a Bloomberg report, the company is developing a new AI model code-named Avocado, expected to launch in early 2026 as a closed, paid system rather than an open-source release.

Sources familiar with the plans say Avocado will come with restricted access to its underlying weights, enabling Meta to monetise the system. The move follows rising development costs, pressure to deliver financial returns, and intensifying global competition in advanced AI models.

Background: Meta Platforms – Wikipedia
Related NK reading:

Zuckerberg signals end of full open-source approach

Meta’s shift is not entirely unexpected. Earlier this year, CEO Mark Zuckerberg hinted that the company would need to be “careful about what we choose to open source,” citing safety concerns and the growing complexity of advanced systems.
The company’s earlier open-source models, including the Llama series, fuelled widespread adoption—but also raised debates on safety, misuse and competitive advantage.

Inside the Avocado model and Meta’s AI reset

The Avocado project reportedly sits at the centre of a sweeping internal reset after mixed reactions to Llama 4, developed under the internal code-name Behemoth. The model allegedly failed to meet leadership expectations and was dropped in favour of a more ambitious effort.

Meta has also appointed Alexandr Wang—founder of Scale AI—as its new Chief AI Officer following a multi-billion-dollar deal. Wang, known for advocating closed-model architectures, now leads the company’s TBD Lab, which is building Avocado. His leadership is said to be strongly shaping Meta’s push for a commercial-grade paid AI product.

As part of the new training pipeline, Zuckerberg has instructed teams to use rival AI systems, including Google’s Gemma, OpenAI’s experimental GPT-OSS, and Alibaba’s Qwen, to guide development.

The company is also undergoing major internal restructuring, coinciding with high-profile departures—including AI pioneer Yann LeCun, long recognised as a champion of open-source research.

Launch expected in early 2026

While initial expectations pointed to a late-2025 rollout, the Avocado model is now expected to debut in the first quarter of 2026, marking one of the most significant pivots in Meta’s AI strategy to date.