Meta (META) stock looked 0.5% less smart today despite reports that it has launched a new division to drive its AI growth.
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Wang in Charge
It has been reported that the company’s AI drive will now be run by Meta Superintelligence Labs, headed up by Alexandr Wang, former CEO of data labeling startup Scale AI. He will have the impressive title of chief AI officer.
The move follows a raft of departures from the social media giant as well as a lukewarm reception for its latest open-source Llama 4 model, which has left it trailing rivals such as Google (GOOGL), OpenAI and China’s DeepSeek in the AI race.
The aim of the new division will be to fast-track work on artificial general intelligence (AGI), which essentially means machines that can outthink humans. It would also help create new cash flows from the Meta AI app, image-to-video ad tools and smart glasses.
Apart from Wang and some Scale AI staff, the new division will reportedly include Safe Superintelligence (SSI) co-founder and CEO, Daniel Gross.
$100M Bonus
Former GitHub CEO Nat Friedman will co-lead the Superintelligence Labs with Wang and head the company’s work on AI products and applied research.
It is understood that Meta boss Mark Zuckerberg has further beefed up his intelligence team by bringing in 11 new hires in the AI field, including researchers from OpenAI, Anthropic and Google.
This follows reports that, according to OpenAI CEO Sam Altman, Meta has offered his employees bonuses of $100 million to join the Meta adventure.
Some analysts, however, remain concerned that even with this new influx of talent, the quest to achieve AGI may just cost the business lots of money for little gain in the near term.
A number of scientists believe it will be another decade before any breakthroughs are made.
Is META a Good Stock to Buy Now?
On TipRanks, META has a Strong Buy consensus based on 42 Buy, 3 Hold and 1 Sell ratings. Its highest price target is $918. META stock’s consensus price target is $720.24 implying a 1.83% downside.
