The logo of Meta is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 11, 2025.
Gonzalo Fuentes | Reuters
Meta Platforms has paused hiring for its new artificial intelligence division, ending a spending spree that saw it acquire a wave of expensive hires in AI researchers and engineers, the company confirmed Thursday.
The pause was first reported by the Wall Street Journal, which said that the freeze went into effect last week and came amid a broader restructuring of the group, citing people familiar with the matter.
In a statement shared with CNBC, a Meta spokesperson said that the pause was simply “some basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
According to the WSJ report, a recent restructuring inside Meta has divided its AI efforts into four teams. That includes a team focused on building machine superintelligence, dubbed the “TBD lab,” or “To Be Determined,” an AI products division, an infrastructure division, and a division that focuses on longer-term projects and exploration.
It added that all four groups belong to “Meta Superintelligence Labs,” a name that reflects Chief Executive Mark Zuckerberg’s desire to build AI that can outperform the smartest humans on cognitive tasks.
In pursuit of that goal, Meta has been aggressively spending on AI this year. That included efforts to poach top talent from other AI companies, with offers said to include signing bonuses as high as $100 million.
In one of its most aggressive moves, Meta acquired Alexandr Wang, founder of Scale AI, as part of a deal that saw the Facebook parent dish out $14.3 billion for a 49% stake in the AI startup.
Wang now leads the company’s AI lab focused on advancing its Llama series of open-source large language models.
Too much spending?
While Meta’s aggressive hiring strategy has caught headlines in recent months for their high price tags, other megacap tech companies have also been pouring billions into AI talent, as well as R&D and AI infrastructure.
However, the sudden AI hiring pause by the owner of Facebook and Instagram comes amid growing concerns that investments in AI are moving too fast and a broader sell-off of U.S. technology stocks this week.
Earlier this week, it was reported that OpenAI CEO Sam Altman had told a group of journalists that he believes AI is in a bubble.
However, many tech analysts and investors disagree with the notion of an AI bubble.
“Altman is the golden child of the AI Revolution, and there could be aspects of the AI food chain that show some froth over time, but overall, we believe tech stocks are undervalued relative to this 4th Industrial Revolution,” said tech analyst Dan Ives of Wedbush Securities.
He also dismissed the idea that Meta might be cutting back on AI spending in a meaningful way, saying that Meta is simply in “digestion mode” after a massive spending spree.
“After making several acquisition-sized offers and hires in the nine-figure range, I see the hiring freeze as a natural resting point for Meta,” added Daniel Newman, CEO at Futurum Group.
Before pouring more investment into its AI teams, the company likely needs time to place and access its new talent and determine whether they are ready to make the type of breakthroughs the company is looking for, he added.
