Meta's AI Pivot: Zuckerberg Abandons Open-Source Strategy for Monetizable Models

Meta is undergoing a dramatic strategic overhaul in artificial intelligence development. Departing sharply from its historical commitment to transparency and open-source frameworks, the social media giant is now pursuing proprietary, commercially controlled AI systems—a move that reflects broader industry trends toward profitability-focused innovation.

The Avocado Project: Closed-Source AI on the Horizon

At the center of this transformation lies Avocado, an internal codename for a next-generation AI model slated for spring 2026 release. Unlike Meta’s previous open-source models, Avocado will operate as a closed-source system, granting Meta exclusive control over access and distribution rights. This approach mirrors strategies adopted by competitors, positioning Meta to monetize its AI research directly.

CEO Mark Zuckerberg has taken personal command of the initiative, investing considerable effort into steering the project through TBD Lab, a specialized core research unit. During Avocado’s development phase, the team incorporated technology from multiple industry players, synthesizing approaches across the sector to accelerate their breakthrough timeline.

Massive Resource Reallocation: AI Over Metaverse

The company’s strategic shift extends beyond software to encompass infrastructure spending and portfolio priorities. Meta is executing a significant reallocation of capital away from its metaverse and virtual reality divisions—historically pet projects pursued at enormous expense—toward AI-focused domains. New spending priorities include advanced AI glasses and computational infrastructure.

Most notably, Meta has committed to investing $600 billion in domestic AI infrastructure over the next three years. This unprecedented spending level signals the company’s determination to build foundational capacity for training, deploying, and scaling proprietary AI systems capable of generating direct revenue streams.

What This Means for the Market

The transition from open-source to closed-source represents a fundamental recalibration of Meta’s competitive positioning. By restricting access to Avocado, the company shifts from a “democratize AI technology” narrative to a “capture AI value” approach. Whether this gamble pays off will depend on the model’s performance relative to existing commercial alternatives entering 2026.