Meta Platforms (META) Explores Ditching Llama for Rival AI Models in Shocking Pivot

Meta's AI strategy takes an unexpected turn—why build when you can borrow?

Subheading: The Llama gets put out to pasture

In a move that's got Silicon Valley buzzing, Zuckerberg's empire appears to be hedging its bets on homegrown AI. Sources suggest Meta is quietly testing alternatives to its much-hyped Llama models. Because nothing says 'confidence in our technology' like shopping the competition.

Subheading: Wall Street shrugs (for now)

The news comes as Meta continues burning cash on its metaverse fantasies—because what's another few billion in R&D between friends? Analysts predict this could either be a masterstroke of pragmatism... or another sign the tech giant's innovation engine is sputtering. Either way, the market barely blinked—after all, when you're valued like a monopoly, you get the benefit of every doubt.

Closing thought: In the AI arms race, even the giants are learning—sometimes the best weapon is someone else's.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

This possible change comes after the rocky launch of Meta’s Llama 4 models in April. Indeed, Meta introduced the models during its LlamaCon event, but they didn’t perform as well as competing AI models, and many developers left the event unimpressed. Since then, Meta has been spending heavily to catch up. Earlier this month, it announced a $14.3 billion investment to buy nearly half of Scale AI. As part of that deal, Scale’s CEO Alexandr Wang will join Meta to lead its “superintelligence” team, which is focused on creating artificial general intelligence.

Meta is also making bold moves to attract top AI talent. Reports say that the company is offering massive signing bonuses—up to $100 million—to hire researchers from OpenAI. On top of that, Meta is in talks to buy PlayAI, which is a startup that creates realistic AI voices. The company had even looked into acquiring other AI firms like Perplexity AI, Runway AI, and FuriosaAI before choosing to invest in Scale. Altogether, these efforts show how serious Meta is about becoming a leader in the AI space under CEO Mark Zuckerberg.

Is Meta a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $716.48 per share implies that shares are NEAR fair value.