Meta Platforms has recently enacted a hiring freeze in its artificial intelligence division, a strategic move following a significant recruitment period where the company brought onboard over 50 specialists from top competitors. This freeze, which took effect last week, aims to facilitate a thorough restructuring of the AI unit and limits the movement of current employees among teams. Any new external hires must now receive approval from Chief AI Officer Alexandr Wang, although the company has not disclosed how long this freeze will last.
The reorganization splits Meta’s AI operations into four specific groups under the newly formed Meta Superintelligence Labs. CEO Mark Zuckerberg’s ambition is clear: to develop systems that exceed human cognitive capabilities. The divisions include the TBD Lab, focused on superintelligence and staffed with many of the recent recruits… a team dedicated to AI product development… an infrastructure unit… and the Fundamental AI Research group, which will continue its long-term projects with minimal changes. This new structure replaces the previous AGI Foundations team, which was dismantled after the performance of the Llama models fell below expectations in April.
Meta’s aggressive recruitment included lavish compensation packages, sometimes reaching nine figures, with offers as high as $100 million in signing bonuses to lure talent from OpenAI, Google DeepMind, and others. The company successfully acquired more than 20 individuals from OpenAI, along with hires from Google, Apple, xAI, and Anthropic. Notably, Zuckerberg directly contacted prospective hires, including one researcher who turned down a significant offer worth up to $1.5 billion.
Investor concerns about these rising expenses have escalated. A Morgan Stanley report from August cautioned that increasing stock-based compensation could impact shareholder returns due to reduced buybacks. Analysts worry that while some of these investments might lead to groundbreaking advancements, they could also dilute company value if not managed carefully, especially amid an industry-wide sell-off driven by rising AI-associated costs.
The freeze is part of what a Meta spokesperson termed “standard organizational planning,” aimed at developing a solid framework following the recent hiring spree and as the company approaches its annual budgeting. Despite posting positive quarterly results, including growth in ad revenue due in part to AI applications, Meta’s Reality Labs division continues to experience significant losses, exceeding $17 billion annually. Overall, this development aligns with similar hiring pauses observed across other tech giants, as the cost of AI development continues to rise.
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