Tech giant Meta Platforms (META) is making big changes to its artificial intelligence division. According to The New York Times, the company is splitting the division into four teams: one will handle general AI research, another will focus on developing superintelligent systems, a third will build AI-powered products, and a fourth will manage infrastructure like data centers and hardware. This restructuring is designed to help Meta move faster and compete more effectively. However, Meta may also shrink the size of the division, which has grown to thousands of employees in recent years, though nothing is finalized yet.
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At the same time, Meta is looking at using outside AI models in its products, instead of only relying on the ones it builds itself. This could include free “open-source” models or paid “closed-source” ones. Interestingly, though, ever since Meta CEO Mark Zuckerberg formed the superintelligence team under Alexandr Wang, internal tensions have reportedly grown. Indeed, one major shift that is being discussed is making Meta’s next model “closed,” meaning its code would no longer be available for others to build on. In addition, the new team decided to scrap the older “Behemoth” model after it underperformed and start from scratch.
As a result, these changes have caused friction between long-time Meta AI employees and newer hires. For example, Meta’s chief AI scientist, Shengjia Zhao, who helped create ChatGPT at OpenAI, has reportedly questioned some long-time staff about their work. Separately, leadership roles are shifting, as Nat Friedman and Daniel Gross will lead AI features under the product and applied research division. Meanwhile, some employees, like Joelle Pineau and Angela Fan, have left for other AI companies, while others, like Rob Fergus, will stay on to lead core AI research.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 41 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $871.84 per share implies 13.9% upside potential.
