Meta Platforms Inc. has imposed a hiring freeze across its artificial intelligence (AI) division, following months of aggressive recruitment from leading AI firms including OpenAI, Google DeepMind, Anthropic, and Apple.
The pause, which took effect last week, comes amid internal restructuring and growing investor scrutiny over escalating costs tied to Meta’s AI ambitions.
The freeze affects both external hiring and internal transfers within the AI division.
While exceptions may be granted with approval from Chief AI Officer Alexandr Wang, the company has not communicated a timeline for resuming recruitment.
A Meta spokesperson described the move as “basic organizational planning,” aimed at consolidating its newly expanded AI teams and aligning them with annual budgeting and strategic goals.
Meta’s High-Stakes Talent Hunt
Over the past year, Meta has emerged as one of the most aggressive players in the AI talent race.
Following underwhelming reception to its Llama language model released in April, CEO Mark Zuckerberg personally led efforts to recruit top researchers and engineers.
Offers reportedly ranged from $100 million to $300 million in total compensation, with some packages reaching as high as $1.5 billion.
Among the high-profile targets was Andrew Tulloch, co-founder of Thinking Machines Lab, who declined a $1.5 billion offer.
Meta ultimately hired more than 20 employees from OpenAI, 13 from Google, three from Apple, three from Elon Musk’s xAI, and two from Anthropic.
To lead its AI efforts, Meta secured Alexandr Wang, co-founder of Scale AI, by acquiring a $14 billion stake in his company.
Other notable recruits include former GitHub CEO Nat Friedman and Daniel Gross, co-founder of Safe Superintelligence, both brought on through strategic investments in their venture firm.
Restructuring: Four-Pronged AI Division
The hiring freeze coincides with Meta’s fourth major AI division restructuring in six months. The company has now split its AI operations into four distinct units:
- Meta Superintelligence Labs: Hosts many of the new hires and focuses on building advanced AI systems.
- AI Products: Integrates AI capabilities into Meta’s consumer-facing platforms.
- Infrastructure: Develops the technical backbone for large-scale AI deployment.
- Fundamental AI Research (FAIR): Continues long-term exploratory research, largely unaffected by the shakeup.
The previously existing AGI Foundations team, responsible for advancing the Llama models, has been dissolved.
Several team members reportedly exited the company around Meta’s vesting date on August 15.
Meta Investor Concerns Over Soaring Costs
Meta’s AI hiring spree has drawn concern from investors, particularly over the ballooning costs of stock-based compensation and infrastructure investments.
In Q2 2025 alone, Meta added $17 billion in capital expenditures, raising its annual capex outlook to $72 billion.
While Meta’s stock surged following strong quarterly earnings, recent market volatility and broader concerns about an AI investment bubble have led to a pullback.
Meta shares have declined about 4% over the past week, with similar drops seen in AI-focused firms like Nvidia and Palantir Technologies.
Despite the freeze, analysts remain cautiously optimistic.
Dan Ives of Wedbush Securities noted, “This is still only the bottom of the second inning in the nine-inning game around building out the AI revolution”.
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