Meta Shares Slip After AI Model Delay And Mid-Trial Antitrust Tensions: What's Going On?

Meta Platforms Inc. META shares are trading lower Friday following a Wall Street Journal report that the company is delaying the release of its next-generation AI model, known internally as Behemoth.

What To Know: Originally expected as early as April, the rollout is now postponed to fall or later, reflecting technical challenges and internal disagreement about the model's readiness.

According to the report, engineers have struggled to make meaningful progress over previous models. Although Meta had previously claimed Behemoth could outperform offerings from OpenAI and Alphabet, internal training issues have slowed development. Frustration inside the company has grown, with management reportedly considering leadership changes on the AI team responsible for Llama 4.

The delay raises questions about Meta's broader AI strategy, especially as the company plans as much as $72 billion in capital expenditures this year, much of it directed toward AI development and infrastructure. While Meta declined to comment on the timeline or reported internal conflicts, the setback puts pressure on its ability to meet expectations in a highly competitive AI landscape.

Separately, Meta is also in the middle of a federal antitrust trial. The company has asked a judge to dismiss the Federal Trade Commission's case, which accuses Meta of maintaining a monopoly by acquiring Instagram and WhatsApp. Meta argued that the FTC has not proven those acquisitions harmed competition or prevented the growth of rival platforms. The outcome of the trial could have long-term implications for the company’s business strategy and regulatory risk.

The combination of AI delays and continued legal scrutiny weighed on Meta's stock, which traded lower despite broader strength in the tech sector. Investors are watching closely for updates on both the product roadmap and the court case as Meta navigates mounting pressure on multiple fronts.

META Price Action: Meta shares were down 0.67% at $639.57 at the time of writing, according to Benzinga pro.

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