Meta Restructures AI Division To Accelerate Product Development And Gain Competitive Edge: Report - Meta Platforms (NASDAQ:META)

In a bid to expedite the launch of new products and features, Meta Platforms Inc. META is reportedly reorganizing its AI teams.

What Happened: The restructuring, announced in an internal memo by Chief Product Officer Chris Cox on Tuesday, will see the division split into two teams. The new structure will consist of an AI products team, led by Connor Hayes, and an AGI Foundations unit, co-headed by Ahmad Al-Dahle and Amir Frenkel, reported Axios.

“Our new structure aims to give each org more ownership while minimizing (but making explicit) team dependencies,” Cox stated in the memo.

The AI Products team will concentrate on Meta’s AI assistant, AI Studio, and AI functionalities across Facebook, Instagram and WhatsApp. Meanwhile, the AGI Foundations unit will be responsible for a range of technologies, including the company's Llama models, as well as initiatives to advance reasoning, multimedia, and voice capabilities.

Although the company is undergoing restructuring, its AI research division, FAIR (Fundamental AI Research), will continue to operate independently from the new organizational setup. However, one team focused on multimedia will transition to the newly formed AGI Foundations team.

Why It Matters: This restructuring comes after the departure of Joelle Pineau, the Vice President of AI research at Meta Platforms Inc., in April. Pineau had been with Meta since May 2017, overseeing the company’s Fundamental AI Research lab. Her departure was announced via a Facebook post.

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The Mark Zuckerberg-led company did a similar internal restructuring in its AI division in 2023. It’s Responsible AI (RAI) team, created in 2020 to promote ethical AI use, saw major changes in its structure and mission. Once growing to nearly 40 members, the team was shrunk to about 25 amid internal shifts.

Meta holds a momentum rating of 87.64% and a growth rating of 92.86%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock’s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.

Meta stock surged more than 33.84% over the past year.