The "sensitive moment" for tech stocks, Meta has stopped "heavily poaching talent"

At a sensitive moment when tech stocks are plummeting, Meta has hit the pause button on the "arms race" for AI talent.

On Thursday, Meta confirmed to the media that the company has paused hiring for its new AI department, effective last week, accompanied by a broader restructuring of the department.

A Meta spokesperson stated in a related announcement that the purpose of this move is “to establish a solid structure for our new superintelligence business after bringing in personnel and conducting annual budgeting and planning.”

It is noteworthy that the timing of Meta's pause in AI talent recruitment is quite sensitive, coinciding with a widespread sell-off of U.S. tech stocks this week and growing concerns about whether the pace of AI investment is too rapid.

According to media reports, Meta's recent internal restructuring has divided its AI business into four teams, including one focused on building machine superintelligence, an AI product department, an infrastructure department, and a department focused on longer-term projects and exploration, all under Meta's superintelligence lab.

Has the talent war cooled after the "AI bubble" theory?

Regarding Meta's hiring freeze, mainstream market analysts have not interpreted it as a strategic contraction. Dan Ives, a technology analyst at Wedbush Securities, believes that Meta is simply entering a "digestive mode" after experiencing a massive spending spree. He stated:

“After making some nine-figure acquisition offers and hiring, I think the hiring freeze is a natural pause point for Meta.”

Daniel Newman, CEO of Futurum Group, expressed a similar view. He believes that Meta may need time to settle and evaluate its newly recruited talent before investing more in its AI team and determining whether they are ready to achieve the breakthroughs the company expects.

The widespread attention to Meta's actions is partly due to its triggering of the market's sensitive nerve regarding the "AI bubble."

Earlier this week, it was reported that OpenAI CEO Sam Altman had told reporters that he believes AI is in a bubble. This viewpoint, combined with the recent weak performance of tech stocks, has heightened concerns among some investors.

However, many tech analysts and investors do not agree with the notion of an AI bubble. Dan Ives stated:

“Altman is the darling of the AI revolution, and certain aspects of the AI food chain may experience some bubbles over time, but overall, we believe that tech stocks are undervalued relative to this Fourth Industrial Revolution.”

From "spare no expense" to "let's pause"

Before announcing the hiring freeze, Meta's spending on AI talent was considered aggressive.

To achieve Zuckerberg's goal of building "superintelligence," the company has been actively taking action this year, including poaching top talent from other AI companies. According to previous media reports, the hiring contracts offered by Meta included signing bonuses of up to $100 million One of the most eye-catching moves is Meta's acquisition of a 49% stake in the AI startup Scale AI for $14.3 billion, bringing its founder Alexandr Wang under its wing.

Currently, Alexandr Wang is responsible for leading the company's AI lab, focusing on advancing its Llama series of open-source large language models. This series of significant investments highlights Meta's determination in the AI talent competition, making the recent plan suspension even more abrupt