Meta Spent $135 Billion on AI — And Their New Model Still Isn't Good Enough

Meta has spent $135 billion on artificial intelligence in 2026. They fired 8,000 people to fund it. And their next-generation AI model — codenamed Avocado — has now missed its launch deadline three times. The model was supposed to ship in late 2025. Then March 2026. Then May. The new target is June — this month. And internally, Meta engineers are reportedly dealing with 'nightly benchmark fires' — emergent failures that keep appearing at scale. But the detail that changes everything: while Avocado was struggling, Meta executives reportedly discussed licensing Google's AI to power Meta's own products. The company that spent $135 billion building its own AI was going to rent a competitor's. And underneath all of it — Meta has already moved on. The real frontier model they're building is called Watermelon. Avocado is just supposed to hold the line while the real weapon is prepared. In this video we break down what Avocado actually is, why it keeps failing, what three missed deadlines mean for Meta's $135 billion AI bet, and what the Watermelon plan tells us about where this is all heading. ⏱️ CHAPTERS 0:00 — Hook 1:17 — What is Avocado — and why it matters 3:03 — Three missed deadlines — what went wrong 4:52 — The $135 billion bet explained 6:34 — The Google licensing bombshell 8:09 — Open source is over — the Llama betrayal 9:42 — Watermelon — the real plan all along 11:12 — What this means for the AI race 12:50 — Outro + CTA 🔔 Subscribe — AI news every Monday, Wednesday and Friday. Produced 100% with AI. #MetaAI #MetaAvocado #ZuckerbergAI #MetaAI2026 #AINews2026 #MetaLlama #TechNews #TechDailyAI #MetaAIModel #AIRace2026