Meta Platforms (META, Financials) is reportedly considering dropping its in-house Llama AI models in favor of rival systems like OpenAI and Anthropic, according to The New York Times. While no final decision has been made, the shift would mark a major change in Meta's open-source AI strategy.
The reconsideration comes after a disappointing rollout of Llama 4 in April; developers at Meta's LlamaCon event left unimpressed. Since then, the company has taken steps to catch up—investing $14.3 billion in Scale AI and hiring its CEO, Alexandr Wang, to lead Meta's new “superintelligence” team.
Meta is also offering signing bonuses reportedly reaching $100 million to lure researchers away from OpenAI; the company has held acquisition talks with AI startups including PlayAI, Perplexity AI, and Runway AI.
Despite the internal challenges, Wall Street remains bullish. Analysts rate Meta a “Strong Buy,” with 42 Buys, three Holds, and one Sell. The average price target sits at $716.48, implying shares are near fair value.
