Facebook parent company Meta Platforms is delaying the rollout of a flagship AI model amid struggles to improve the capabilities of its "Behemoth" large language model offering, the Wall Street Journal reported. Meta stock slipped in afternoon trades.
The Behemoth version of Meta's Llama AI models has been delayed until the fall or later, according to the Wall Street Journal's report. The Behemoth update was not included as Meta rolled out updates to two smaller Llama models ahead of its AI conference in late April. Meta is contemplating management changes within its AI product group as the result of frustrations with the AI model's progress, the report said, citing unnamed sources.
On the stock market today, Meta stock fell 2.4% to close at 643.88. Shares were trading roughly 1% lower earlier in the day but fell further following the report.
Meta Stock: Expensive AI Push
The report could cast concerns on an expensive initiative from Meta. Chief Executive Mark Zuckerberg has told investors that Meta expects to spend roughly $68 billion on capital expenditures this year, focused in large part on developing AI-related infrastructure.
Meta's open-source AI Llama models are a central part of that investment. The company wants its offerings to be the top choice for developers making AI applications. But it is facing steep competition from ChatGPT creator OpenAI, as well as other open-source players like China-based startup DeepSeek.
Zuckerberg told analysts following the social media giant's Q1 earnings report that AI is "transforming everything we do." He added that the company is focused on utilizing AI to improve its advertising business, boost user engagement, grow messaging services for businesses and develop AI devices.
Thursday will mark a rare down day for Meta, of late. Shares are up 17% for the month, helped by the company's strong Q1 results and sales outlook posted April 30. The stock also rallied on the easing of tariffs between the U.S. and China.
Meta stock is ahead roughly 10% year to date.
