Michael Dell, the CEO of Dell Technologies Inc. (NYSE:DELL), expressed concerns about the potential cultural challenges that Meta Platforms Inc. (NASDAQ:META) might face due to its aggressive artificial intelligence hiring strategy.
What Happened: Dell, in a BG2 podcast hosted by Bill Gurley and Brad Gerstner, on Thursday, warned that Meta’s AI hiring spree could lead to internal discontent among existing employees. This could result in a significant distraction for Meta and its CEO, Mark Zuckerberg.
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“It’ll be a challenge culturally for sure,” Dell said. He pointed out that the generous salaries of new AI hires could lead to unhappiness and resentment among existing employees. This could potentially create a long line of “complaining” employees outside Zuckerberg’s office, demanding fair treatment.
Dell emphasized the importance of fairness in the workplace, stating, “People generally have a sense of fairness, right? They want to be treated fairly relative to others and relative to the opportunities that they have out there in the overall market.”
While Dell acknowledged that Meta’s strategy and the “math” could work if this is reduced to a “race to super intelligence,” he maintained that the potential for internal conflict and dissatisfaction should not be overlooked.
Why It Matters: Meta has been aggressively expanding its AI dominance through its Superintelligence Labs, launched in June to pursue artificial general intelligence. This expansion has been fueled by poaching top talent from OpenAI, Anthropic, Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google DeepMind, and Apple Inc. (NASDAQ:AAPL), reshaping the AI landscape in a fierce talent war.
However, this aggressive hiring spree has not been without criticism. Like Dell, OpenAI CEO Sam Altman previously warned of potential cultural problems at Meta due to its recruitment efforts, calling it "distasteful". He also hinted at possible compensation evaluations for the entire research organization at OpenAI in response to Meta’s hiring strategy.
On the other hand, Reid Hoffman, LinkedIn cofounder and former OpenAI board member, told CNBC it’s economically justified for companies like Meta to invest heavily in AI talent.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
