Meta Halts AI Hiring Spree Amid Talent Wars and Investor Scrutiny

Meta has paused hiring in its AI division following months of aggressive talent acquisition, marking a sudden shift in its high-stakes push to develop superintelligence. The company described the freeze as part of routine organizational planning, citing the need to build a stable structure for its new superintelligence initiatives after recent hiring waves and annual budgeting. The hiring freeze, first reported by the Wall Street Journal, began last week and also restricts internal team transfers within the AI division. Meta has not disclosed how long the pause will last or how many new hires have been made so far. The move comes amid growing internal tensions. Reports indicate friction between newly recruited AI experts—lured by massive signing bonuses and stock grants—and existing researchers, some of whom have threatened to leave over perceived inequities. Alexandr Wang, head of Meta’s Superintelligence Labs, recently sent an internal email emphasizing the urgency of the mission, stating that “superintelligence is coming” and demanding sweeping changes to Meta’s AI operations. The freeze coincides with increased scrutiny from Wall Street over Meta’s escalating AI spending. Morgan Stanley analysts warned that the company’s labor costs are rising sharply, driven by generous stock-based compensation packages used to attract top AI talent. These grants now represent a growing portion of Meta’s cost structure and could become a key concern for investors, especially if they fail to yield clear innovation or returns. Meta has been at the forefront of the AI talent war, reportedly offering $100 million signing bonuses to secure high-profile hires. Such aggressive strategies have drawn criticism from industry leaders. OpenAI’s Sam Altman called the approach “crazy,” arguing that focusing on compensation over mission risks undermining company culture. Anthropic’s Dario Amodei stated his company would not engage in bidding wars, emphasizing fairness and long-term values over short-term pay spikes. AMD CEO Lisa Su echoed those concerns, saying she would never offer a billion-dollar package. While acknowledging the fierce competition for talent, she stressed that purpose, mission, and cultural alignment matter more than pay alone. “It’s important to be in the ZIP code of those numbers,” she told Wired, “but then it’s super-important to have people who really believe in the mission.” Despite the hiring pause, Meta’s stock has risen about 28% this year, reflecting investor confidence in its broader AI strategy. However, the freeze signals a recalibration—shifting from rapid expansion to structural consolidation as Meta attempts to balance ambition with sustainability.