Meta's Pricey Pursuit of AI Talent Sparks Criticism from Musk

Meta Platforms is reportedly offering nine-figure packages to lure elite AI talent from OpenAI, Apple, and Alphabet's Google. The move is part of Meta's push to dominate AI, with over $1 billion spent on top-tier talent. CEO Mark Zuckerberg justifies the spending, saying "If you're going to be spending hundreds of billions...it really does make sense to compete super hard and do whatever it takes." Tesla CEO Elon Musk mocks Meta's spending, saying his AI startup xAI has "vastly more market cap growth potential" and a "hyper merit-based" culture.

Title: Meta's Nine-Figure Packages: A New Front in the AI Talent War

Meta Platforms has reportedly offered nine-figure compensation packages to attract elite AI talent from OpenAI, Apple, and Alphabet's Google. This aggressive move is part of Meta's broader push to dominate the AI landscape, with the company spending over $1 billion on top-tier talent. CEO Mark Zuckerberg has justified the spending, stating, "If you're going to be spending hundreds of billions...it really does make sense to compete super hard and do whatever it takes" [1].

Tesla CEO Elon Musk has mocked Meta's spending, highlighting that his AI startup, xAI, offers "vastly more market cap growth potential" and a "hyper merit-based" culture. Musk noted that many strong Meta engineers have joined xAI without the need for astronomically high salaries [1].

Meta's Superintelligence Labs team has seen several high-profile hires, including Ruoming Pang from Apple and Shengjia Zhao from OpenAI, with compensation packages reportedly worth over $200 million [1]. Zuckerberg has been actively recruiting talent, even hosting AI researchers at his home, in response to the poor performance of the Llama 4 model [1].

Meta's aggressive hiring strategy has been driven by the company's ambitious vision of "personal superintelligence" and AI-powered advertising dominance. In Q2 of 2025, Meta's revenue increased by 22% to $47.52 billion, driven by AI technology [2]. The company has raised its capital expenditure guidance for 2025 to $66-72 billion, reflecting its commitment to AI infrastructure expansion [2].

Despite the spending, Meta's Reality Labs continues to burn cash, with $4.53 billion in operating losses. Rising capital expenditures and expense growth could pressure margins if AI benefits don't scale proportionally. However, Meta's superintelligence bet appears to be paying dividends, with the company's AI-powered recommendation systems delivering impressive engagement improvements across its platforms [2].

The AI talent war in Silicon Valley is intense, with companies like Apple, Google, and Microsoft also competing for top talent. While Meta's spending is significant, it remains to be seen whether the investment will yield long-term benefits. Analysts overwhelmingly rate Meta stock as a "Strong Buy," with an average price target of $824, about 10% above current prices [2].

References:
[1] https://timesofindia.indiatimes.com/technology/tech-news/many-top-engineers-of-meta-are-joining-my-ai-company-xai-and-i-am-paying-them-says-ceo-elon-musk/articleshow/123087868.cms
[2] https://www.barchart.com/story/news/33856458/superintelligence-is-powering-super-results-for-meta-platforms-should-you-buy-meta-stock-here