Wall Street Breakfast Meta aims for new AI model in '26
22 snips
Dec 9, 2025 Meta's gearing up to launch its proprietary AI model, Avocado, set to replace Llama in 2026. Meanwhile, job openings are slightly up, but layoffs are on the rise, highlighting a cooling labor market. Home Depot expresses caution about its 2026 outlook, with sales guidance falling short of expectations. Additionally, a $1 billion buyout will mark Office Depot's journey into private ownership. Goldman Sachs shares insights on consumer stocks, focusing on those benefiting middle-income households.
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Meta Moves To A Proprietary LLM
- Meta is developing a proprietary successor to Llama, codenamed Avocado, targeted for early 2026 to better compete with Google, OpenAI, and Anthropic.
- The shift from open-source Llama to closed Avocado follows internal debate and org changes aimed at faster generative AI product development.
AI Arms Race Intensifies
- Meta has expanded AI resources, including a nearly $15 billion stake in Scale AI and naming Alexander Wong chief AI officer to accelerate development.
- OpenAI's ChatGPT also grew rapidly, reaching 900 million weekly active users, highlighting fierce competition in generative AI.
Retail And Housing Show Strain
- Retailers face mixed signals as Home Depot trimmed its 2026 outlook and Toll Brothers reported weaker demand and delayed closings.
- AutoZone also missed fiscal Q1 estimates, showing consumer and housing-related pressures across sectors.