Meta freezes AI hiring
After a very expensive AI hiring spree in its search to create AI that surpasses human intelligence, Meta is now freezing new AI hires without express permission from Chief AI Officer Alexandr Wang, The Wall Street Journal reports.
Earlier this week, The New York Times reported that amid a broader restructuring of its AI efforts into four groups (first reported by The Information), Meta is even considering downsizing the group.
A Meta spokesperson confirmed the freeze to WSJ, saying it’s part of “basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
With reports of compensation packages for top AI recruits reaching nine digits, investors are wary of what such over-the-top costs might mean for their returns. During the company’s last earnings call, Meta executives said that employee compensation would be the second-largest driver of expense growth in 2026 after capex, which has been enormous. This week, Morgan Stanley warned of dilution risks thanks to increasing stock-based compensation among tech companies like Meta.
This week’s tech sell-off may be linked to renewed concerns about the potential returns associated with all this unbridled spending on AI.
A Meta spokesperson confirmed the freeze to WSJ, saying it’s part of “basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
With reports of compensation packages for top AI recruits reaching nine digits, investors are wary of what such over-the-top costs might mean for their returns. During the company’s last earnings call, Meta executives said that employee compensation would be the second-largest driver of expense growth in 2026 after capex, which has been enormous. This week, Morgan Stanley warned of dilution risks thanks to increasing stock-based compensation among tech companies like Meta.
This week’s tech sell-off may be linked to renewed concerns about the potential returns associated with all this unbridled spending on AI.
