Big Tech has poured hundreds of billions into AI development, building models and data centers. Forecasts predict trillions more in spending as firms race to dominate the technology. Meta imposed a hiring freeze on its AI division, halting recruitment for roles tied to advanced language models and platform integration. Meta previously offered large signing bonuses to attract talent, then faced internal backlash and scrutiny over investment returns. The CTO called $100 million bonuses exaggerated, but the freeze indicates a shift toward fiscal caution. Market dips suggest investors question whether AI spending delivers proportional returns, raising bubble concerns.
The artificial intelligence (AI) boom has propelled Big Tech valuations to dizzying heights, with companies like ( ( Meta PlatformsNASDAQ:META), Google, and MicrosoftNASDAQ:MSFT) pouring hundreds of billions into AI development, from cutting-edge models to sprawling data centers. Forecasts predict trillions more in spending as firms race to dominate a technology hailed as transformative as the internet itself. Yet, cracks are emerging in this high-stakes gamble.
reported on Meta's recent decision to The Wall Street Journal impose a hiring freeze on its AI division, ssending ripples through the tech world. The freeze halts recruitment for roles critical to Meta's ambitious AI projects, which include building advanced language models and integrating AI into its social platforms. This move comes after Meta reportedly offered multimillion-dollar bonuses to poach talent from rivals like OpenAI, only to face internal backlash and questions about returns on investment.
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