Key Points
-
Meta is delaying its new AI model, Avocado, and may temporarily license Alphabet’s Gemini technology.
-
The company achieved a 24% year-over-year revenue growth in Q4, totaling $59.9 billion, with an 18% increase in ad impressions.
-
CEO Mark Zuckerberg has outlined plans to manage infrastructure and power demands in case of delays.
Meta Platforms (NASDAQ: META) is facing a setback as it delays the rollout of its custom AI model, Avocado, due to performance issues compared to rival models like Alphabet’s Gemini. Reports indicate that this decision has led to a decline in shares amid concerns over the company’s aggressive capital expenditure plans, projected at $115 billion to $135 billion by 2026.
Despite the setback, Meta’s ad business remains robust, evidenced by a 24% revenue increase in Q4 2025, totaling $59.9 billion, driven by higher ad impressions and pricing. Zuckerberg has emphasized that the company can leverage its additional computing power for its core business in the interim, signaling confidence in the company’s ability to adapt while navigating the evolving landscape of AI technology.
