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Meta Delays ‘Avocado’ AI Model as Competition With Google Intensifies in Race for Advanced Systems

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Meta Platforms has delayed the launch of its next major artificial intelligence model, code-named “Avocado,” pushing the release to at least May from an earlier plan to debut the system this month, according to a report by The New York Times.

People familiar with the development told Reuters that internal testing shows the model’s capabilities currently fall between the performance levels of Google’s Gemini 2.5 and Gemini 3 systems, prompting Meta engineers to extend development as the company works to close the gap with the most advanced models in the industry.

The delay was announced as the race among major technology firms to build increasingly powerful AI systems has become defined by rapid iteration cycles, massive computing requirements and extremely tight performance benchmarks.

Avocado has been under development for months as Meta seeks to strengthen its position in the fast-evolving generative AI market, where companies are racing to build systems capable of advanced reasoning, coding assistance and multimodal tasks such as processing images, text and audio simultaneously.

However, the model has so far fallen short of the most recent offerings from rivals, according to the report. Rather than release a system perceived as trailing competitors, Meta has opted to delay the launch until May or June, allowing engineers more time to refine performance and training data.

A spokesperson for Meta reiterated remarks previously made by chief executive Mark Zuckerberg during the company’s January earnings call.

“As we’ve said publicly, our next model will be good, but more importantly, show the rapid trajectory we’re on, and then we’ll steadily push the frontier over the course of the year as we continue to release new models,” the spokesperson said.

“We’re excited for people to see what we’ve been cooking very soon,” the spokesperson added.

The delay comes as Meta dramatically increases spending on artificial intelligence infrastructure, part of what has become one of the largest capital-investment programs in the technology sector.

In January, Zuckerberg outlined plans to spend between $115 billion and $135 billion this year, with much of the money directed toward AI development.

The spending spree includes building new data centers, acquiring large quantities of advanced chips used for AI training and inference, and developing proprietary semiconductor technology designed specifically for machine learning workloads. The company’s long-term objective is to build systems capable of achieving “superintelligence,” a theoretical stage where artificial intelligence could outperform humans across many intellectual tasks.

That ambition places Meta among a small group of technology companies investing enormous sums in frontier AI research.

Building Chips and Infrastructure

One of the key pillars of Meta’s AI strategy is reducing reliance on external hardware suppliers by designing its own chips optimized for AI workloads. Custom silicon could allow the company to run massive training clusters more efficiently while lowering long-term costs associated with using third-party processors.

Such moves mirror broader industry trends as technology firms attempt to control more of the AI technology stack — from chips and infrastructure to the models themselves. Training cutting-edge models, which requires thousands of high-performance processors running in massive data centers, has become strategically important in the AI race.

Considering A Rival’s Technology

The New York Times report also said leaders within Meta’s AI division have discussed the possibility of temporarily licensing Google’s Gemini models to power some of the company’s AI products.

While no decision has been reached, such a step would illustrate how rapidly evolving the competitive landscape has become. Even companies building their own models are sometimes willing to rely on external systems to maintain momentum in consumer products while internal development continues.

For Meta, however, adopting a rival’s technology would represent a delicate strategic balancing act, given its substantial investment in developing proprietary AI models.

A Crowded And Expensive Battlefield

Meta’s efforts unfold in a technology sector where companies are spending billions to secure leadership in artificial intelligence. Major firms, including Microsoft and Amazon, are also investing heavily in infrastructure and AI development as generative systems become central to cloud computing, enterprise software, and digital services.

The scale of investment indicates expectations that AI will reshape industries ranging from advertising and media to software engineering and scientific research.

But the technology carries particular importance for Meta.

The company plans to deploy AI systems across its platforms — including Facebook, Instagram, and WhatsApp — to improve content recommendations, automate moderation, enhance messaging tools, and refine advertising targeting. AI-driven features are also expected to play a role in future products linked to virtual and augmented reality ecosystems.

However, Meta’s postponement of Avocado is seen as a further indication of the growing challenges of competing in an industry where technological advances arrive at an extraordinary speed. Each new model must demonstrate clear improvements in accuracy, reasoning ability, and efficiency while remaining economically viable to operate at a large scale. Releasing a weaker model risks damaging credibility among developers and enterprise users who increasingly depend on AI systems for critical applications.

Analysts say the delay, therefore, underpins an ideal calculation: launching a stronger model later may be preferable to introducing one that fails to match competitors’ capabilities.

Kraken’s xStocks Platform Implemented xPoints Rewards System 

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Kraken’s tokenized stock platform, through its xStocks initiative, a Kraken-linked platform for tokenized U.S. equities and ETFs, has recently implemented a points-based rewards system called xPoints.

This program, launched around March 10, 2026, incentivizes user engagement in the tokenized stocks ecosystem. Participants can earn xPoints by: Trading tokenized U.S. equities; assets like tokenized Tesla, Apple, or S&P 500-related tokens. Providing liquidity to supported trading pairs or pools. Using these tokenized assets in decentralized finance (DeFi) applications or integrations.

The system tracks activity across various supported venues, exchanges, liquidity pools, and dApps. This comes as the broader tokenized equities sector has surged, with total market value exceeding $1 billion and growing traction among major players.

The rollout has sparked speculation in the crypto community that xPoints could be a precursor to a future ecosystem token potentially for governance, rewards redemption, fee rebates, or other utilities. Points programs like this are a common pattern in crypto projects before launching a native token, though xStocks (and Kraken) has not officially announced or confirmed any token plans yet.

xStocks offers tokenized representations of real-world stocks/ETFs (backed 1:1 by underlying assets), issued as on-chain tokens (e.g., SPL tokens). They enable 24/7 weekday trading for eligible users primarily non-U.S., with availability in regions like the EU and beyond.

Recent partnerships, such as with Nasdaq for future tokenized equity developments targeting 2027 launch, highlight growing institutional interest in this space. This move aligns with Kraken’s push into real-world asset (RWA) tokenization, boosting liquidity and adoption in tokenized equities.

Coinbase’s involvement in tokenized stocks is primarily focused on building infrastructure and laying groundwork rather than offering a fully live retail tokenized stock trading platform like some competitors. Coinbase Tokenize is Coinbase’s dedicated end-to-end platform for tokenizing real-world assets (RWAs), including equities, private companies, funds, real estate, and more.

It targets institutional users with features for issuance, custody, compliance, and trading of tokenized assets. It’s positioned as the foundational tech to connect traditional finance (TradFi) to on-chain finance, emphasizing institutional-grade security and performance. This is live and accessible via coinbase.com/tokenize, but it’s geared toward asset managers, issuers, and financial providers rather than direct retail trading of tokenized stocks.

Coinbase introduced conventional stock and ETF trading in early 2026 for U.S. customers, with zero-commission trades, fractional shares starting at $1, 24/5 hours, and integration in the main app partnering with Yahoo Finance for discovery. This is not tokenized—it’s traditional brokerage-style trading. Tokenized equities are explicitly called out as the longer-term goal.

Coinbase noted: “More information regarding tokenized equities will be available in the coming months,” and clarified that tokenized equities won’t be offered through their standard U.S. brokerage entities (Coinbase Capital Markets or Coinbase, Inc.) to navigate regulatory constraints. This suggests a separate structure, likely on-chain via their Base blockchain (Ethereum L2), possibly using AMM liquidity pools, transfer agents, and focusing initially on crypto-correlated or globally accessible equities.

As of now, no widespread retail tokenized stock trading is available directly on Coinbase for U.S. users due to SEC regulations. Coinbase has been pushing for clearer pathways (filing requests in mid-2025 and ongoing advocacy), but offerings remain limited or pending approvals.

CEO Brian Armstrong has repeatedly emphasized tokenized stocks as transformative—enabling 24/7 global trading, on-chain composability using tokenized stocks in DeFi, instant settlement, and fractional ownership without legacy rails. He compares it to stablecoins’ growth trajectory.

Tokenized equities overall have surged: The sector hit over $1 billion in on-chain value recently driven by platforms like xStocks, Ondo, Backed Finance on Solana/Base, etc., with total RWAs exceeding $20–30B+. Coinbase is actively involved in the ecosystem—e.g., supporting tokenized assets indirectly, listing related products, and building toward an “everything exchange” vision that includes tokenized RWAs, prediction markets, and more.

Coinbase is heavily invested in the future of tokenized stocks through Coinbase Tokenize and regulatory/roadmap efforts, with traditional stock trading as a bridge. Full retail tokenized stock access especially for U.S. users appears imminent but not yet rolled out—watch for updates in the coming months, as hinted in their announcements. This aligns with the industry’s rapid RWA growth, similar to Kraken’s points system signaling ecosystem expansion.

Apple Slashes App Store Fees in China to 25%, 12% for Small Businesses and Mini Apps

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Apple announced Thursday that it will reduce commission fees collected through its China App Store, lowering the standard rate on in-app purchases and paid transactions from 30% to 25% effective Sunday, March 15 — World Consumer Rights Day in China.

Developers enrolled in Apple’s Small Business Program or Mini Apps Partner Program will see fees drop from 15% to 12%. The adjustment applies to all developers whose apps are distributed via the China App Store, including international companies such as Duolingo, which generates approximately $50 million annually from the Chinese market.

Apple did not disclose the exact financial impact, but the state-owned Economic Daily estimated the change would save Chinese developers more than 6 billion yuan ($873 million) in annual operating costs.

“This adjustment will… improve consumption choices and information transparency,” the Economic Daily wrote in a Thursday report that framed the fee cut as a victory for Chinese digital consumers.

The newspaper projected that prices for membership subscriptions, game recharges, live-streaming tips, mini-programs, and other scenarios could decrease, potentially saving consumers up to nearly 1 billion yuan per year.

Breakthrough for Super Apps and Mini-Program Ecosystem

The reduction is particularly significant for operators of China’s “super apps” — platforms such as Tencent’s WeChat and ByteDance’s Douyin (TikTok’s Chinese version) — which host millions of third-party mini apps and mini-programs. These lightweight applications operate within the host app and often rely on in-app purchases or paid services.

Lower fees will directly benefit developers building within these ecosystems, potentially spurring innovation and competition in areas such as gaming, education, e-commerce, and social commerce. Rich Bishop, founder of AppInChina — a consultancy that helps foreign developers navigate the Chinese market — told CNBC: “In China’s case, [Apple] have been talking with the IT ministry and other departments, and have been requested or pressured to reduce their fees.”

Bishop noted that the timing, coinciding with World Consumer Rights Day, carries symbolic weight. In 2013, state broadcaster CCTV publicly criticized Apple’s after-sales service, forcing a rare public apology from the company.

Global Scrutiny of the ‘Apple Tax’ Meets Local PressureApple’s 30% “Apple Tax” has faced antitrust scrutiny worldwide. The European Union forced a reduction to 10–17% for most developers under the 2024 Digital Markets Act. In the U.S., Apple now allows alternative payment methods in certain cases following legal challenges. In China, Bloomberg News reported last year that the country’s antitrust regulator was considering an investigation into Apple’s App Store policies, while a consumer antitrust complaint was filed in October 2025 over fee structures.

The fee cut also applies to international developers distributing in China, providing broad relief. Bishop highlighted the potential benefit for apps like Duolingo.

“This will be saving them a decent amount of money,” he said.

Bishop cautioned that further concessions could follow. “In future, the Chinese government may request Apple to collect App Store revenues in China instead of overseas, and further tighten regulatory oversight for foreign apps published in China,” he said.

Apple has previously removed apps such as virtual private networks (VPNs) from the China App Store at the request of internet regulators. VPNs — which allow users to bypass censorship by masking device location — remain a sensitive issue in China, where internet-connected devices carry unique codes disclosing their location.

Apple’s move comes as Google last week reduced Android developer fees worldwide, intensifying competition in app-store economics. The adjustment underlines the unique pressures Apple faces in China, its second-largest market, where regulatory influence is strong and consumer-protection campaigns carry significant political weight.

While the fee reduction will ease costs for developers and potentially lower prices for Chinese consumers, it also points to the ongoing global debate over app-store commission structures. Regulators in multiple jurisdictions continue to scrutinize the 30% standard, with outcomes ranging from mandated fee reductions to alternative payment rails and sideloading options.

In 2020, Apple announced that existing app-makers and new developers who earned $1m or less from Apple’s marketplaces would only have to give up a 15% cut starting in 2021. That reduced by half the standard rate of 30%. The decision follows widespread criticism by developers of the fees Apple charges, which exacerbated the company’s antitrust scrutiny.

The China-specific cut provides immediate relief to developers and super-app ecosystems, for now, while positioning Apple as responsive to local regulatory signals. The longer-term impact, including potential revenue implications for Apple and behavioral changes among developers, will become clearer in the coming quarters as transaction volumes reflect the new pricing.

Trump Presses Fed For Rate Cuts As Iran War-Driven Oil Surge Clouds Inflation Outlook

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Donald Trump renewed his call for immediate interest-rate cuts on Thursday as surging oil prices tied to the escalating war with Iran began reshaping expectations for U.S. monetary policy.

“He should be dropping Interest Rates, IMMEDIATELY,” Trump wrote on Truth Social, directing the message at Jerome Powell, chair of the Federal Reserve.

The public pressure comes as the conflict in the Middle East injects fresh uncertainty into the global inflation outlook, complicating the central bank’s path toward easing borrowing costs.

Markets Shift Away From Rate Cuts

Since the United States and Israel launched strikes on Iran on February 28, financial markets have sharply revised their expectations for U.S. interest-rate policy.

Before the conflict began, traders had expected the Fed to deliver two quarter-percentage-point rate cuts by the end of the year. Now, interest-rate futures markets are barely pricing in one reduction, underscoring how quickly sentiment has changed. The shift follows a familiar dynamic in global markets: geopolitical shocks that disrupt energy supply often push oil prices higher, and that feeds directly into inflation.

For the Federal Reserve, which is attempting to bring inflation back toward its 2% target, a new oil-driven price surge could delay any move toward looser policy.

Energy markets have been roiled by the war’s impact on shipping through the strategically critical Strait of Hormuz, a narrow maritime corridor that carries roughly one-fifth of the world’s oil supply.

Iran’s new supreme leader, Mojtaba Khamenei, said Thursday that the passage would remain closed, intensifying concerns about global supply shortages. The statement helped drive crude prices higher, with West Texas Intermediate crude settling at $95.70 per barrel, close to levels not seen in several years.

Energy economists say that if disruptions persist, the resulting supply shock could ripple through transportation, manufacturing, and agriculture, lifting prices across a wide swath of the global economy.

Oil’s importance in the global economy means that higher crude prices rarely remain confined to the energy sector. More expensive oil typically leads to higher gasoline and diesel prices, raising transportation costs for companies and pushing up the cost of shipping goods.

Those higher logistics expenses eventually filter into the prices consumers pay for everything from groceries to manufactured products. Food prices could face additional pressure because the Strait of Hormuz is also a critical route for fertilizer shipments, an essential input for global agriculture.

Disruptions in fertilizer supply can quickly affect crop production costs, increasing the likelihood of higher food inflation worldwide.

Inflation Outlook Worsens

Economists are already adjusting their forecasts.

Analysts at Goldman Sachs said Thursday that they now expect the Fed’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, to rise to 2.9% by December, well above the central bank’s long-term target.

The bank has also pushed back its forecast for the Fed’s next rate cut to September, from June previously, citing the risk that sustained energy price increases could slow the disinflation process. Such a delay would reinforce the “higher-for-longer” interest-rate environment that has weighed on housing, corporate borrowing, and consumer spending over the past two years.

Leadership Change Adds Another Layer Of Uncertainty

The policy debate is unfolding just weeks before a leadership transition at the Federal Reserve. Trump has nominated former Fed governor Kevin Warsh to succeed Powell when the current chair’s leadership term ends in mid-May. Warsh is widely viewed by investors as more open to cutting interest rates.

Even so, the surge in oil prices may limit how quickly the central bank can pivot toward easier monetary policy. Historically, the Fed has been cautious about lowering rates during periods of energy-driven inflation because doing so risks amplifying price pressures.

However, the clash between political calls for lower borrowing costs and market expectations of sustained inflation is seen as a sign of how the Iran conflict is beginning to reshape the global economic outlook.

Economists warn that if energy prices continue climbing and supply disruptions intensify, the war could force central banks around the world to maintain tighter monetary policies than previously expected. For businesses and consumers already grappling with elevated borrowing costs, that would mean a longer period of expensive credit and persistent price pressures.

We Begin Today March 14: Build Your Own Mini-ChatGPT in Tekedia AI Lab

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Tekedia AI Lab: From Technical Design to Deployment begins today, Saturday, March 14. I will start with a broad introduction to AI, connecting ideas from natural philosophy to modern computing to provide the conceptual foundations.

By the end of tomorrow’s session, you will have a mini-ChatGPT running on your personal computer or laptop.If you would like to learn with us, registration is still open here.