-- Mike Isaac and Cade Metz, NY Times, 6/27/25
Gizmodo "Mark Zuckerberg Wants to Win AI by Copying Everyone Smarter Than Him"
TechCrunch "After trying to buy Ilya Sutskever’s $32B AI startup, Meta looks to hire its CEO
-- The Information1 "Inside the Great AI Talent Auction: The Deals, the Free Agents—and the Egos"
-- TechCrunch, Reuters, The Information2 "Meta reportedly hires four more researchers from OpenAI"
*** In Pursuit of Godlike Technology, Mark Zuckerberg Amps Up the A.I. Race
1. Meta’s April AI Misfire Triggered a Strategic Overhaul
After publicly hyping its LLaMA 4 model, Meta’s April AI launch fell flat, with missing features and underwhelming performance compared to OpenAI and Google. Zuckerberg, unhappy with the result and internal missteps, began restructuring AI leadership and reevaluating the company’s open-source commitment.
- The AI launch did not meet expectations for performance or readiness (e.g., voice interaction).
- Meta leadership considered deprioritizing its open LLaMA model in favor of external proprietary models.
2. Zuckerberg Responds with Massive Talent and Investment Blitz
Zuckerberg kicked off a hiring spree and acquisition strategy, including offering $100M bonuses to top OpenAI talent and securing a $14.3B minority stake in Scale AI. Meta has already hired at least eight OpenAI researchers and is actively poaching from competitors.
- Top AI talent like Alexandr Wang (Scale AI CEO) and four recent OpenAI researchers have joined Meta.
- Offers extended to over 45 OpenAI researchers, some confirmed hires, and more still under negotiation.
3. Meta Pursues a “Superintelligence” Lab to Compete with OpenAI and Google
Meta is building a new elite AI research division focused on long-term “superintelligence,” akin to OpenAI’s stated mission. The effort includes recruiting figures like Ilya Sutskever, Daniel Gross, and Nat Friedman — though not all efforts have succeeded.
- Talks with Safe Superintelligence’s Gross and venture partner Friedman are ongoing.
- A new lab under Wang and other recent hires will aim to accelerate Meta’s research trajectory.
4. Meta’s Open-Source Strategy Shows Strain Under Pressure to Catch Up
Zuckerberg’s longstanding open-source commitment (via LLaMA) has been quietly reconsidered. Internally, Meta questioned whether open-source distribution had helped competitors leapfrog them. Meanwhile, Chinese startups like DeepSeek have outpaced Meta using Meta’s own code.
- Some Meta AI executives pushed to adopt proprietary models from Anthropic or OpenAI.
- LLaMA models were reported to have been benchmarked selectively to appear more competitive.
5. The Broader AI Talent War Is Escalating Across the Industry
The competition for AI researchers has reached unprecedented levels, with figures like Nadella, Altman, and Pichai personally involved in recruiting. AI researchers are commanding elite-tier compensation, and departures from OpenAI — while not crippling — are now seen as potentially transformational.
- Meta’s Bosworth said top AI talent now rivals NBA-level compensation.
- Altman has pushed back against claims of $100M offers, signaling increasing tension between firms.
This summary reflects how Meta’s missteps have triggered a dramatic and ongoing escalation in AI strategy, investment, and internal reorganization, especially as it repositions itself to compete with OpenAI and Google in the race toward advanced AI.
*** OpenAI and Microsoft Duel Over AGI in High-Negotiation
1. The AGI Clause and Its Growing Tension
The original 2019 contract gave Microsoft access to OpenAI’s technology through 2030, with a clause allowing OpenAI to cut off access if AGI (Artificial General Intelligence) is achieved. Initially seen as a fantasy, this clause has become a major point of conflict as OpenAI now believes AGI is within reach. Microsoft strongly disagrees and wants the clause removed.
- OpenAI defines AGI as systems solving complex problems at human levels in many fields.
- Microsoft argues real AGI must show measurable economic impact, such as global GDP growth.
2. Stalled Restructuring and IPO Conflict
OpenAI wants to restructure its for-profit arm to prepare for an IPO, but Microsoft, its largest investor, has veto power and is using it as leverage. OpenAI is refusing to give up the AGI clause, and Microsoft won’t approve restructuring unless it gets better terms.
- IPO requires restructuring to allow traditional equity; without it, OpenAI can’t raise the projected $46 billion it needs.
- Microsoft is pushing to retain rights to IP and profits beyond 2030, while OpenAI wants more flexibility.
3. The Fractured Partnership and Competing Interests
Once a “marriage of convenience,” the partnership is strained by differing goals and rising competition. OpenAI struck deals with Apple and Oracle, sometimes sidelining Microsoft. Meanwhile, Microsoft is investing in its own models like Phi to reduce dependence on OpenAI.
- OpenAI is also poaching Microsoft’s AI talent and forming rival alliances.
- Microsoft’s team, led by Mustafa Suleyman, has clashed with OpenAI over limited access to model internals.
4. OpenAI’s Strategic Moves Beyond Microsoft
OpenAI has broadened its reach, launching ChatGPT features that may compete with Microsoft Office and turning to Google Cloud during server shortages. Despite tensions, OpenAI models still run on Microsoft Azure, which gives Microsoft indirect leverage.
- OpenAI’s image generation tool caused surges that Azure couldn’t handle, pushing OpenAI to Google.
- Collaboration tools under development could encroach on Microsoft’s productivity suite.
5. The Stakes: Profit, Control, and the Future of AI
At the core, this is a battle over control and future profits. OpenAI projects $174 billion in revenue by 2030. Microsoft wants a larger slice or longer rights, while OpenAI seeks freedom to grow, diversify, and assert its AGI timeline.
- Both sides are maneuvering—OpenAI for independence, Microsoft for security.
- The outcome could reshape not just their partnership but AI governance industry-wide.
No comments:
Post a Comment
Your comments will be greatly appreciated ... Or just click the "Like" button above the comments section if you enjoyed this blog note.