Rumor
Meta develops Avocado model for 2026 as EssilorLuxottica weighs smart glasses capacity expansion
Wednesday, February 18, 2026 at 12:45 PM
Meta is reportedly developing a proprietary next-generation AI model codenamed Avocado, targeted for a first-half 2026 release with a projected 10x increase in compute efficiency compared to Llama 4. Additionally, Meta's manufacturing partner EssilorLuxottica is considering doubling or tripling production capacity for Ray-Ban smart glasses to 20–30 million units per year due to significant supply constraints and backlogs extending through 2026.
Context
Meta is accelerating its AI hardware lead by developing Avocado, a proprietary model slated for H1 2026 that reportedly offers 10x the compute efficiency of Llama 4. While competitors like OpenAI face production delays until 2027 for their hardware ventures with Foxconn, Meta is leveraging its existing base of 4 billion monthly active users to deploy integrated AI at a scale rivals cannot match. This strategy prioritizes platform-level utilization and social acceptability over pure model benchmarks.
Surging demand for Ray-Ban Meta smart glasses has prompted EssilorLuxottica to weigh a massive capacity expansion, potentially tripling output from 10 million to 30 million units annually. This hardware success creates a high-intent environment for advertisers, potentially doubling Meta’s average $10–20 CPMs. If successful, this integration of next-gen silicon efficiency and wearable dominance could unlock tens of billions in incremental revenue across Meta’s $160 billion annual advertising base.
Related Companies
Meta
META
Foxconn
2317