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With so high assessments, Wall Street did not take a lot to take a break from the AI trade. What started earlier this week as negative rumors became something stronger and more worrying.
After the news was released that Meta had started a restructuring of its new AI team, the Wall Street Journal reported that the company has frozen in its AI division, recruiting to recruit more than 50 AI researchers and engineers with the attraction of massive job offers.
Investors could have welcomed such a judgment in major expenses if he had been another company. After all, the compensation packages, assessed at hundreds of millions of dollars over several years, looked like money from professional athletes.
But Meta deceived her IA expenses as proof of her commitment and reflects her great ambitions. In turn, the market applauded. Only NVIDIA (NVDA), the flea company that provides technological platforms, has performed better this year. Meta shares are increasing by more than 25%, Outmaneuver Alphabet (Goog, Googl) and Microsoft (MSFT), tickers with a more natural AI adjustment and technological advance.
Now CEO Mark Zuckerberg would have extinguished the tap. More A-Rod style contracts at 10 years and $ 252 million. Worse than the end of money contracts, however, the reason why Meta had to offer them in the first place.
A reminder that is good news for the AI industry, but bad news for Meta.
Rather than reading the reshuffle of the AI of Zucck and hiring the withdrawal as a lower signal for the AI trade, it is worth considering a simpler interpretation: This is another sign of the Meta AI dysfunction.
Like John Herrman, columnist for the New York Magazine Tech, told Yahoo Finance in a live interview and wrote in a chronicle to him this weekMeta to spend all this money to attract AI talents comes from a corporate culture increasingly perceived as hostile to its workers, devoid of a clear vision and clumsy strategies. Idealist researchers and motivated technologists are seen and their style of work in other outfits, he said, whether it is the advanced work of Sam Altman in Openai or even in the ethics and the ideology of rider and the associated chaos that surrounds the XAI of Elon Musk.
Meta’s absurd offers were a way to overcome its drawbacks, perhaps, a sign of despair rather than a show of strength.
“There is a war on talent, but it is not a billion dollar war,” said Herrman in the interview. “This is Meta’s problem. It is because they cannot recruit the same way as Openai.”
