Meta Platforms (NASDAQ:META) is getting serious about becoming a true AI heavyweight. In its most recent Q3 2025 earnings call, the company confirmed it’s deep into development of two new generative AI models—a visual model code-named Mango and a large language model called Avocado. The goal? Nothing less than redefining how we create, consume, and monetize digital content.
The release of these models is expected in the first half of 2026, and the strategic intent is clear: challenge Alphabet’s Nano Banana, outflank OpenAI on distribution, and chip away at Adobe’s dominance in creative software. To get there, Meta has restructured its AI division under “Meta Superintelligence Labs,” led by Alexandr Wang and built with talent poached from OpenAI. Mango could shake up the AI video generation space in a way that puts long-term pressure on traditional content creation tools.
Intensifying Competition In AI Image & Video Models
Meta Mango image video AI enters a market already crowded with ambitious players. Google’s Gemini division has made waves with its Nano Banana tool, boosting adoption by hundreds of millions. But Mango isn’t just another model—it’s Meta’s all-in bet on winning the next phase of content generation. Mango is designed to deliver higher-fidelity image and video generation, likely trained on a massive dataset spanning billions of content interactions across Instagram, Facebook, and WhatsApp.
Here’s why that matters: Google may have a great model, but Meta has the users. Meta is betting that its AI tools will be more effective when paired with real-time engagement signals from its social platforms. While Nano Banana gained traction quickly, Mango could leapfrog it by producing not just better results but more personalized ones—an important distinction in a world where virality and shareability define success.
Plus, there’s a competitive undertone here. OpenAI’s launch of Sora and Google’s Nano Banana raised the stakes for AI-generated media. But Meta’s fast-growing Vibes product already shows the company has legs in this race. With Mango, Meta wants to lead, not follow. The battlefield is now about who can integrate generation and distribution, not just who has the flashiest demo.
Platform-Driven Scale & Ecosystem Advantage
Here’s the secret weapon behind Meta Mango image video AI: the company doesn’t have to go looking for users. With over 3.5 billion people across Facebook, Instagram, WhatsApp, and Threads, Meta can instantly push Mango-generated content into users’ feeds, reels, and messages. That’s a massive leg up over competitors like OpenAI or Midjourney, which need users to come to them.
Unlike Google, whose video tool adoption often depends on search or workspace integrations, Meta can push, test, and iterate inside its own platforms. It’s a flywheel effect. The more people engage with AI-generated video or images, the more training data Mango gets. And the smarter the model becomes, the more engaging the content becomes, driving more ad revenue in the process.
This closed-loop model also extends to monetization. Instagram Reels already generates a $50 billion annual run rate. Imagine what happens when those reels are created at scale using Mango. Advertisers won’t care if content is human- or AI-generated—if it gets views and clicks, they’ll buy. That’s why Meta is so bullish on integrating Mango with its family of apps. The company’s full-stack control over content generation, delivery, and monetization is unmatched. And when you own the ecosystem, you set the rules.
Structural Disruption Of Creative Software Markets
If you’re Adobe, you’re probably watching Meta Mango image video AI with a mix of curiosity and existential dread. Adobe’s business depends on millions of creative professionals using tools like Photoshop, Premiere Pro, and After Effects. But what happens when a teenage creator can generate stunning visuals in seconds using Mango without ever touching a timeline or brush tool?
Generative AI is changing the game. Traditional editing software is built for precision, but not necessarily speed or scale. Mango, by contrast, is about democratization—making high-quality content available to people with zero editing skills. That threatens not only Adobe’s top line but also its relevance in a future where creation is automated, not handcrafted.
And it’s not just Adobe. Final Cut Pro, DaVinci Resolve, even Canva—they all face a potential erosion of mindshare and market share. As content becomes more synthetic, platforms like Meta can control the entire creative journey: ideation, production, distribution, and monetization. That’s something software companies can’t easily replicate, no matter how many AI plugins they bolt on.
The rise of Mango-style tools could shrink the market for standalone editing software. And in the long run, that could compress margins, increase churn, and challenge licensing models across the board. Creative pros may not abandon Adobe overnight, but the next generation might not pick it up at all.
Strategic AI Talent & Execution At Meta
Execution is everything, and Meta Mango image video AI wouldn’t be possible without serious talent firepower. Over the summer, Meta launched Meta Superintelligence Labs and brought in Alexandr Wang to run it. The company went on a hiring spree, poaching over 20 researchers from OpenAI and adding 50+ AI specialists to form one of the densest AI talent hubs in Silicon Valley.
This isn’t just a branding exercise. Zuckerberg has made clear that he sees Meta as a frontier AI lab, not just a social media company. The AI reorg wasn’t optional—it was survival strategy. And it’s already paying off. In the Q3 2025 call, both Zuckerberg and CFO Susan Li emphasized how compute-hungry the new models are and why Meta is front-loading infrastructure spending to stay ahead.
More important, Meta’s internal alignment means the models being developed (like Mango and Avocado) are not just research demos but tightly integrated with revenue engines. Whether it’s through ad optimization, business messaging, or user engagement, Meta is laser-focused on ROI. This gives it a practical edge over labs that prioritize academic breakthroughs or open-source experimentation.
The talent edge may be Meta’s biggest long-term moat. Building models is hard. Scaling them to billions of users while maintaining performance is harder. And doing it while keeping regulators, advertisers, and shareholders happy? That’s the real magic trick.
Final Thoughts: Where Meta’s AI Gamble Could Redraw the Creative Map
The rollout of Meta Mango image video AI and the upcoming Avocado LLM represents a big swing at the AI crown. Meta has the user base, the infrastructure, the talent, and increasingly, the compute capacity to compete with and perhaps surpass Alphabet and OpenAI in key areas like image, video, and coding AI. It also has a clear monetization engine that ties AI back to ads and user engagement.
That said, the road isn’t risk-free. Infrastructure costs are rising fast, with Meta now forecasting $70–72 billion in 2025 CapEx, and an even higher outlay in 2026. Talent retention, regulatory scrutiny, and the actual performance of Mango and Avocado will ultimately determine whether the models can live up to the hype.
From a valuation standpoint, Meta is trading at 20.83x LTM EBIT and 29.36x LTM earnings, suggesting a premium priced for execution. Yet, it’s cheaper on a forward basis, at 12.62x NTM EBITDA and 22.59x NTM P/E. That gives investors some margin of safety—but only if Mango and Avocado can scale as promised. For now, they’re models to watch. And maybe, just maybe, a preview of how AI will redraw the creative map.
Disclaimer: We do not hold any positions in the above stock(s). Read our full disclaimer here.
