Meta, the tech behemoth behind Facebook and Instagram, is no stranger to reinvention. But even for a company famed for bold pivots, the latest shakeup inside its artificial intelligence division is sending shockwaves through Silicon Valley. On August 20, 2025, reports surfaced from multiple outlets, including The New York Post and Quad Cities Business Journal, detailing a high-stakes power struggle unfolding within Meta’s AI ranks. At the heart of the drama: Mark Zuckerberg’s aggressive push to lure top-tier AI talent, a move that’s upending the company’s culture and sparking internal friction.
Just this summer, Shengjia Zhao—an OpenAI veteran and co-creator of ChatGPT—was named Meta’s chief AI scientist. Zhao’s arrival, however, has been anything but quiet. According to sources cited by The New York Post, Zhao has been rigorously interviewing longtime Meta employees for new roles as part of a sweeping reorganization. “Researchers have been lining up outside Zhao’s office in recent weeks as the former OpenAI star conducts these assessments,” one insider told the publication. For many, it’s a nerve-wracking process, with Zhao grilling staff about their past work and vision for the future.
But Zhao isn’t the only new face stirring the pot. Alexandr Wang, the 27-year-old whiz kid behind Scale AI, was poached by Meta with a jaw-dropping nine-figure deal. Wang now leads Meta’s superintelligence team as chief AI officer, and his arrival has triggered heated debates over the company’s fundamental approach to AI development. Wang’s team is pushing for a “closed” model—meaning Meta would keep its next-generation AI technology secret, a major departure from its long-held open-source philosophy. This shift has left many veteran researchers uneasy, especially those who championed Meta’s ethos of sharing models for the broader developer community to build upon.
The stakes couldn’t be higher. Meta is racing to compete with rivals like OpenAI and Google, both of whom have made stunning advances in generative AI. As part of its gambit, Meta invested a staggering $14.3 billion in Wang’s former company, Scale AI, before bringing him aboard to lead the charge. Zuckerberg, never one to shy away from big bets, has backed his new hires with record-breaking compensation packages and told investors to expect capital expenditures as high as $72 billion this year. Last month, he pitched what he called “a new era of individual empowerment,” signaling that Meta’s future—and perhaps its very survival—hinges on winning the AI arms race.
This all comes as Meta’s AI division undergoes a dramatic restructuring. The company is splitting its AI operations into four distinct groups: research, superintelligence development, products, and infrastructure. According to The New York Post, the shakeup has already led to several high-profile departures. Joelle Pineau, a leading AI scientist, left for startup Cohere, while Angela Fan—who helped develop Meta’s open-source Llama model—jumped ship to OpenAI. Loredana Crisan, vice president of generative AI, is also leaving for Figma as its new chief design officer.
For those who remain, uncertainty looms. Meta is reportedly considering downsizing its AI division, which has ballooned to thousands of employees. Potential role eliminations and transfers to other departments are on the table, as the company seeks to trim what some insiders call a “bloated” workforce. The restructuring, sources say, represents Zuckerberg’s most aggressive gamble yet—a bid to ensure Meta isn’t left behind as the AI revolution reshapes the tech industry’s power structure.
It’s not just about people, though. Meta is also rethinking its technology stack. Traditionally, the company relied solely on its own AI models to power products. Now, it’s actively exploring the use of third-party models, either by building on other open-source platforms or licensing closed-source technology from competitors. This marks a significant shift in strategy and, for some, a tacit admission that the company can’t go it alone in the rapidly evolving AI landscape.
Not everyone at Meta is thrilled with the changes. Three people with direct knowledge of the matter told The New York Post that longtime staffers have bristled at the influx of new hires and the billions spent to recruit them. There’s a sense among the old guard that the company’s culture—once defined by radical transparency and open collaboration—is giving way to secrecy and corporate intrigue. “Some members of the old guard have chafed at the new hires as Meta has spent billions to bring in AI talent,” the report noted.
The friction at Meta mirrors broader trends playing out across the tech and financial sectors. As highlighted by Quad Cities Business Journal on August 20, 2025, the financial services industry is also at a crossroads, facing what some call a “silver tsunami.” Young talent from Generation Z and Alpha are entering the workforce, eager to leave their mark, while older professionals retire in droves. This generational turnover is reshaping not just who holds power, but how companies approach innovation, risk, and leadership.
In Meta’s case, the generational divide is especially stark. On one side, you have seasoned researchers who built the company’s AI legacy—many of whom are now being assessed, reassigned, or shown the door. On the other, a new wave of high-profile hires, flush with cash and bold ideas, determined to chart a new course. It’s a classic story of disruption, but with billions of dollars and the future of AI at stake.
The tension between open and closed models isn’t just an academic debate; it has real-world implications for developers, businesses, and everyday users. Meta’s decision to potentially lock down its next-generation AI technology could reshape the ecosystem, limiting access for smaller players and concentrating power in the hands of a few giants. For a company that once championed openness, it’s a striking about-face.
Meanwhile, the exodus of top talent is raising questions about Meta’s ability to retain its edge. With Joelle Pineau, Angela Fan, and Loredana Crisan all heading for greener pastures, some worry that institutional knowledge and continuity may be slipping away just when the company needs it most. Others argue that fresh blood is exactly what Meta needs to stay competitive, especially as AI development accelerates at breakneck speed.
As the dust settles, one thing is clear: Meta’s AI division is in the midst of a profound transformation. Whether Zuckerberg’s high-stakes gamble will pay off remains to be seen, but the outcome will reverberate far beyond the walls of Menlo Park. In a world where artificial intelligence is poised to reshape everything from social media to financial services, the battle for talent, ideas, and control is only just beginning.
For now, all eyes are on Meta’s next moves—and whether the company can turn internal discord into the kind of innovation that once made it a Silicon Valley icon.
