US EditionBig Tech’s AI Bubble: Meta’s Move Hints at a Looming Crash
Meta halted AI hiring after acquiring over 50 researchers in a costly talent spree and restructuring its AI division into four specialized groups, aiming to optimize strategy and costs.
- On August 21, 2025, Meta Platforms confirmed it paused hiring for its artificial-intelligence division last week, with no internal communication on the freeze's duration.
- Meta's spending spree included poaching more than 50 AI professionals with nine-figure offers and $100 million bonuses, plus a $14.3 billion investment in Scale AI, bringing founder Alexandr Wang aboard.
- Meta reorganized its AI work by splitting Meta Superintelligence Labs into four teams: superintelligence, products, research, and infrastructure, and Meta CEO Mark Zuckerberg said, `You really want the smallest group that can hold the whole thing in their head`.
- Insiders say the freeze bars AI division employees from internal moves, with Meta not disclosing its duration, while investors and Wall Street analysts express unease over billions burned on AI.
- Broader context shows an MIT study found 95 percent of companies implementing AI saw no returns, while Meta Platforms' blockbuster AI bets have burned through billions this year, raising bubble concerns.
22 Articles
22 Articles
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People Like Sam Altman and Eric Schmidt Are Calling Out the AI Bubble, Just as Meta Pauses AI Hiring
Big names in Silicon Valley collectively seem to be saying the same thing abut the AI boom lately, namely that it is looking more and more like a bubble, and that the rush to AGI (artificial general intelligence) may be very misguided.The Wall Street Journal has a report today that Meta's widely buzzed-about AI hiring spree is coming to an abrupt halt, likely due to scrutiny by high-profile investors who are balking at the massive sums being thr…
Meta implements hiring freeze after splitting up its AI superintelligence team
First came poaching, then restructuring and downsizing, now Meta has implemented a hiring freeze for its AI research team. A new report from the Wall Street Journal, following an earlier report this week from The New York Times, added new speculation about Meta's whiplash changes to its AI research efforts. According to the Times report on Tuesday, Meta is overhauling its newly formed Superintelligence Lab, by breaking it up into four smaller te…
Doubts arise whether the massive investment in artificial intelligence is worthwhile and the expensive technology can fulfil its productivity promises.
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