Meta's next-gen AI model, Avocado, is delayed until Q1 2026, primarily due to training performance issues, as revealed by CNBC. Internally, CEO Alexandr Wang's $14.3 billion hire has spurred tensions, amidst a pivot from the open-source Llama strategy to proprietary models following Llama 4's lackluster launch. With major layoffs in its AI division and competitors like OpenAI and Google gaining ground, Meta's AI transformation faces increased scrutiny as it struggles to deliver innovative solutions.