Meta Considers Shifting from Llama AI to Competitors
Meta Re-evaluates AI Strategy Amid Llama Challenges
Meta Platforms is facing a pivotal moment in its artificial intelligence strategy, with internal discussions suggesting the company may abandon its proprietary Llama AI model in favor of third-party solutions from competitors like OpenAI and Anthropic. This potential shift represents one of the most significant strategic adjustments since Meta committed to open-source AI development.
The Turning Point: Llama 4 Launch
The decisive moment came during April's Llama 4 launch event, where the new iteration failed to generate enthusiasm among developers at Meta's annual LlamaCon conference. Industry analysts note the muted response marked a critical juncture for Meta's AI ambitions, prompting executives to reconsider their technological roadmap.
"When your core developer community doesn't embrace your flagship product, it forces difficult conversations," said an anonymous source familiar with Meta's AI strategy discussions. "The leadership team is now seriously evaluating whether continuing with Llama makes strategic sense."
Strategic Investments and Talent Acquisition
In response to these challenges, Meta has initiated several aggressive moves:
- $1.43 billion investment in Scale AI, with Scale's CEO Alexandr Wang appointed to lead Meta's new "Superintelligence" team
- Offering signing bonuses up to $100 million to attract top researchers from competitors
- Ongoing acquisition talks with PlayAI, Perplexity AI, and Runway AI
These measures suggest Meta is pursuing a dual strategy: building external partnerships while simultaneously strengthening internal capabilities through talent acquisition.
Wall Street Remains Optimistic
Despite internal challenges, financial analysts maintain confidence in Meta's long-term position:
- Current average target price: $716.48 per share (as of July 2025)
- Majority of analysts rate Meta as "strong buy"
- Stock valuation considered near "fair value" range
The sustained market confidence appears rooted in Meta's willingness to make bold strategic adjustments rather than doubling down on underperforming initiatives.
Key Points:
- Strategic pivot: Meta may abandon Llama AI for competitor solutions
- Investment surge: $1.43B in Scale AI plus aggressive talent recruitment
- Market position: Wall Street maintains strong confidence despite challenges
- Future outlook: Acquisition strategy could reshape Meta's AI capabilities