Meta Platforms (META) Ends AI Hiring Push Following Huge Capital Expenditure

Meta Platforms, Inc. (NASDAQ:META) is placed 3rd on our list of the best stocks to buy. On August 20, Meta announced that it had stopped hiring in its AI division after bringing in more than 50 AI researchers and engineers over the past few months.

The hiring freeze started last week and is part of a bigger restructuring in Meta’s AI division. The changes also prevent current employees from moving between teams within the division. There is no clear timeline for the end of the freeze.

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Earlier this year, Meta went on a big AI hiring push, offering nine-figure salaries to lure talent from major AI companies like OpenAI. The company also reportedly used reverse acquihires to take key staff from start-ups. Meta has reorganized its AI division into four teams, including one focused on superintelligence. Zuckerberg personally led efforts to recruit top talent from OpenAI, Google, Apple, and AI startups, even offering huge sums to lure them in.

The company is seen as one of Wall Street’s “AI Hyperscalers”, a group of big tech firms investing massive amounts into AI development and data centers. Meta alone has set aside around $72 billion for AI this year. However, this heavy spending has worried investors, who are concerned that higher costs and generous stock-based compensation could hurt profits.

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