Meta stock drops following WSJ report on AI model delay

Meta stock drops following WSJ report on AI model delay
# 16 May 2025 03:31 (UTC +04:00)

Shares of Meta Platforms Inc (NASDAQ:META) fell 2.5% amid news that the company is postponing the launch of its highly anticipated AI model, Behemoth, due to developmental challenges. According to the Wall Street Journal, the delay has raised questions within the company regarding the effectiveness of its substantial investments in artificial intelligence, APA reports citing Reuters.

The tech giant, known for its social media platforms such as Facebook and Instagram, has been racing to catch up with competitors in the AI space, investing billions in the process. Behemoth, a large-language model, was expected to be a significant advancement over previous versions. However, engineers at Meta are reportedly struggling to achieve a substantial improvement in the model’s capabilities, causing internal debate about whether the incremental enhancements warrant a public release.

Originally scheduled for an April debut in alignment with Meta’s first AI conference for developers, the release of Behemoth was pushed to June and now has been further delayed to fall or possibly later, the report said. 

While Zuckerberg and other executives have not publicly committed to a specific timeline for Behemoth’s launch, there is concern among Meta’s engineers and researchers that its performance may not live up to the company’s public claims about its capabilities. This uncertainty has contributed to the stock’s decline as investors reassess the potential impact of these AI initiatives on Meta’s future growth.

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