Meta's year of aggressive AI moves: Here's what you need to know

Core Insights - Meta has started 2025 as a leader in AI but is now perceived as lacking a coherent strategy and facing high costs [2] - The company has experienced significant internal changes, including four reorganizations in six months within its AI team [3] Group 1: Company Strategy - Meta's initial ambition for its Llama model has diminished, with CEO Mark Zuckerberg mentioning it less frequently by the October earnings call [3] - The next AI model, codenamed Avocado, has been delayed until Q1 2026, indicating potential issues in development timelines [3] Group 2: Acquisitions and Investments - Meta has acquired Manis AI for over $2 billion, aiming to enhance its capabilities in general-purpose AI agents [4] - The acquisition is seen as a strategic move to bolster Meta's subscription business and expand tools across WhatsApp [5] Group 3: Market Reaction - Following the acquisition of Manis AI, Meta's market capitalization increased by approximately $18 billion, suggesting positive investor sentiment towards the deal [5] - Despite heavy investments, including a $14 billion deal in June, investors are still looking for tangible products that can generate revenue [5]