Meta has frozen AI hiring after spending $100M on talent and facing Llama model setbacks, as restructuring sparks investor concerns over high costs.
Meta Freezes AI Hiring Amid Cost Concerns and Restructuring
Meta Platforms (NASDAQ: META) has frozen hiring across its artificial intelligence (AI) division following months of aggressive recruitment. More than 50 top AI researchers and engineers were brought in from rivals like OpenAI and Google. The freeze, which began last week, also blocks internal transfers within the AI unit, according to sources.
While Meta confirmed the hiring halt, a spokesperson framed it as a routine organizational adjustment tied to budgeting and building a stable structure for its superintelligence initiatives. External hires during this period require approval from Chief AI Officer Alexandr Wang.
Investor Pressure & Costly Talent War
The move follows Meta’s headline-grabbing recruitment blitz, which included lavish compensation packages. Some researchers reportedly received offers exceeding $100M, with one offer rumored to be worth more than $1.5B—but still declined. CEO Mark Zuckerberg personally contacted top researchers through email and WhatsApp.
Meta has reorganized its AI division into Meta Superintelligence Labs, split into four teams:
- Superintelligence (TBD Lab)
- AI Products
- Infrastructure
- Fundamental AI Research
The underperforming AGI Foundations team, which had worked on Meta’s Llama model, was dissolved earlier this year after disappointing results.
Rising Market Concerns
Investors are increasingly wary of Meta’s massive AI expenditures. Morgan Stanley warned that growing stock-based compensation could erode shareholder returns if breakthroughs don’t materialize quickly. While Zuckerberg remains focused on building AI systems that surpass human cognition, analysts suggest the market is paying closer attention to spending as tech valuations come under pressure.
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