Meta Platforms stock rose Monday, adding to a rally that has placed the tech giant's shares back at record levels for the first time since February. The gains come as Meta Chief Executive Mark Zuckerberg revealed his plans for an AI lab focused on "superintelligence" that will include researchers poached from OpenAI.
After some recent artificial intelligence setbacks, Zuckerberg has been racing to recruit talent for an AI research lab at Meta focus on AI-powered "superintelligence." He announced the formation of the division in a memo sent to employees late Monday.
"As the pace of AI progress accelerates, developing superintelligence is coming into sight," Zuckerberg wrote in the memo, as reported by the Wall Street Journal. "I believe this will be the beginning of a new era for humanity, and I am fully committed to doing what it takes for Meta to lead the way."
The so-called Meta Superintelligence Labs will include Meta's existing AI research teams, the groups that develop Meta's AI products and a new lab focused on next-generation AI models, according to an internal memo cited in a Wall Street Journal report.
The lab will be led by Alexandr Wang, the founder of Scale AI. Wang joined Meta earlier this month after the Facebook parent company invested $14.3 billion in Scale AI. Former GitHub CEO Nat Friedman will lead Meta's effort on AI products.
Meta Lures OpenAI Researchers With Big Offers
Prior to the announcement, reports were already swirling about Meta's efforts to lure research talent from OpenAI, the startup whose ChatGPT chatbot set off the generative AI craze late in 2022. The Wall Street Journal reported last Wednesday that Meta had recruited three OpenAI researchers from the company's Zurich office. The Information reported Saturday that another four OpenAI researchers were headed to Meta.
OpenAI's Chief Research Officer Mark Chen said that the company is "scoping out creative ways to recognize and reward top talent" following the departures. He made the comments in an employee memo on Saturday, which was obtained by Wired.
Zuckerberg's AI offensive has included offering top OpenAI talent $100 million bonuses, OpenAI Chief Executive Sam Altman said on a podcast earlier this month. Meta did not respond to a request for comment on Altman's remarks. But a Meta executive clarified in an employee meeting last week that the $100 million offer was not for a "sign-on bonus," according to The Verge.
Meta Stock Sets New High
The race for top talent is part of a broader spending offensive for Meta focused on AI. Zuckerberg told investors in April that the company plans to spend about $68 billion in capital expenditures this year. That compares to $39.2 billion in 2024.
Wall Street analysts have been scrutinizing those costs. But they are generally bullish on Meta's ability to use AI to boost engagement and advertising sales on Facebook, Instagram and its other apps. One goal from Zuckerberg is to use AI to offer fully automated advertising campaigns.
On the stock market today, Meta stock added .6% to close at 738.09.
That was a record high close for Meta, its first since Feb. 14. At that point, Meta had posted gains for 20 straight days, a record for the company. But the streak gave way to a sell-off that saw Meta lose more than 30% of its value between Valentine's Day and mid-April. The stock was hit by fears about tariffs and the removal of the "de minimis" import exemption slowing its advertising business.
Strong first-quarter results and the 90-day lowering of President Donald Trump's China tariffs helped ease concerns and allowed Meta to rally. Shares are up 14% in June after rallying 18% in May. Overall, Meta stock is ahead 27% year to date, the best performance among Magnificent Seven stocks.
Meta stock has surged beyond a 5% buy zone above a 662.67 cup-with-handle buy point from a June 2 breakout, according to IBD MarketSurge.
