Meta, the parent company of Facebook, recently declared a hiring halt across its artificial intelligence (AI) divisions. This represents a notable turn in their otherwise hawkish rhetoric on the internet’s next big boom, AI development. This decision has been in effect as of the end of last week. It is the latest move in a larger restructuring campaign across Meta’s AI-focused teams, including the newly formed Meta Superintelligence Labs.
The company leads the charge in AI innovation through its dedicated lab that focuses on advancing the Llama series of open-source large language models. Under the leadership of Alex Wang, who previously founded Scale AI, Meta aims to enhance its capabilities in AI and machine learning. Last year, Meta acquired a 49% stake in Scale AI for $14.3 billion, further solidifying its commitment to developing advanced AI technologies.
Meta also has a more fluid structure with many siloed in-house specialized creative divisions. These divisions include an AI products division, an infrastructure division, and a team focused on longer-term projects known as the TBD lab, or “To Be Determined.” These four groups, together, work under the umbrella of Meta Superintelligence Labs. Chief Executive Mark Zuckerberg has high-minded goals to build AI systems. He hopes to go beyond the cognitive abilities of the wisest humans.
To recruit the best talent in today’s highly competitive environment of AI, Meta made some fierce moves. They dangled signing bonuses of up to $100 million to poach the best minds from competing firms. In addition to this offensive talent acquisition strategy, the recent hiring freeze is a strong counterpoint on the defensive side.
“After making several acquisition-sized offers and hires in the nine-figure range, I see the hiring freeze as a natural resting point for Meta.” – Daniel Newman, CEO at Futurum Group
This large-scale restructuring effort is part of a bigger strategy. It’s intended to improve planning across organizations and establish a solid foundation for Meta’s efforts toward superintelligence. A spokesperson for the company stated that the freeze will allow for “some basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
The news of this hiring freeze is important, especially as Meta finds itself at the center of a rapidly changing technological environment. In the short run, this suggests that there may be turbulence in the AI industry, but the long-term picture looks positive, something industry analysts have pointed out. Dan Ives of Wedbush Securities remarked on the broader implications of AI developments, suggesting that “Altman is the golden child of the AI Revolution,” hinting at an overall undervaluation of tech stocks amid this fourth industrial revolution.