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Meta Launches ‘Superintelligence Labs’ to Revive AI Strategy Amid Fierce Competition

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Meta is restructuring its artificial intelligence efforts under a new division called Meta Superintelligence Labs, in a bid to regain lost ground in the global AI race. According to a source familiar with the matter, the new unit will be headed by Alexandr Wang, the former CEO of data-labeling firm Scale AI, who now takes on the role of Chief AI Officer at Meta.

The move comes as Meta grapples with senior staff exits and underwhelming reception to its latest open-source model Llama 4, developments that have left rivals such as Google, OpenAI, and China’s DeepSeek in stronger positions. Meta CEO Mark Zuckerberg reportedly hopes the new lab will fast-track progress toward artificial general intelligence (AGI)—a long-term ambition to build machines that can surpass human intelligence.

In recent weeks, Zuckerberg has taken personal control of AI recruiting, targeting high-profile names with aggressive offers, including attempts to lure OpenAI co-founder Ilya Sutskever’s new startup Safe Superintelligence (SSI). Offers reportedly reached $1 million per candidate via direct WhatsApp outreach.

The shakeup includes Meta’s $14.3 billion investment in Scale AI earlier this month. In addition to Wang, the Superintelligence Labs will include SSI co-founder and CEO Daniel Gross, while former GitHub CEO Nat Friedman will co-lead the division, focusing on applied AI products.

Meta has also attracted talent from top AI firms, hiring at least 11 new AI researchers from OpenAI, Anthropic, and Google DeepMind. Notable names include Jack Rae and Pei Sun (DeepMind), Jiahui Yu, Shuchao Bi, Shengjia Zhao, and Hongyu Ren (OpenAI), as well as Joel Pobar (Anthropic), who had previously spent over a decade at Meta.

Earlier this month, OpenAI’s CEO Sam Altman revealed that Meta had offered some of his staff $100 million bonuses to switch companies.

Despite the hiring blitz, some analysts are skeptical of Meta’s AGI strategy. They point to the company’s Reality Labs unit, which has burned over $60 billion since 2020 with few commercial wins, outside of Ray-Ban smart glasses and Quest headsets.

The broader tech sector is expected to spend $320 billion on AI development this year. Other firms are also making bold moves: Microsoft spent $650 million acquiring most of Inflection AI’s team, and Amazon has poached key personnel from Adept.

Still, the path to AGI remains uncertain. Meta’s own Chief AI Scientist Yann LeCun has publicly said that current methods are inadequate to reach true AGI. Meanwhile, SoftBank CEO Masayoshi Son believes the breakthrough is within 10 years.

SoftBank’s Masayoshi Son Proposes $1 Trillion Arizona AI and Robotics Hub

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SoftBank Group founder Masayoshi Son is planning a $1 trillion industrial complex in Arizona focused on robotics and artificial intelligence, Bloomberg News reported Friday, citing sources familiar with the matter. The ambitious project aims to revive high-end tech manufacturing in the U.S. and create a hub akin to China’s manufacturing powerhouse, Shenzhen.

Son is reportedly seeking to partner with Taiwan Semiconductor Manufacturing Co. (TSMC) for the venture, codenamed Project Crystal Land, though the exact role TSMC would play and its interest level remain unclear. TSMC is already investing heavily in U.S. chip manufacturing with planned investments totaling $165 billion.

SoftBank officials have engaged in discussions with U.S. federal and state officials, including Commerce Secretary Howard Lutnick, to explore tax incentives for companies that build factories or invest in the industrial park.

The project also seeks interest from other tech giants such as Samsung Electronics. However, the plans are preliminary and dependent on support from the Trump administration and state authorities.

If realized, the $1 trillion investment would surpass the scale of the $500 billion “Stargate” project, a U.S. data center expansion funded by SoftBank, OpenAI, and Oracle.

SoftBank and TSMC have declined to comment on the report. The White House and Department of Commerce did not immediately respond to requests for comment.

This proposed initiative follows several major SoftBank investments this year, including its $6.5 billion acquisition of semiconductor designer Ampere and up to $40 billion commitment to OpenAI, part of which may be syndicated to other investors. Recently, SoftBank also raised $4.8 billion by selling shares in T-Mobile.

Microsoft May Walk Away from OpenAI Negotiations Amid Stake Disputes

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Microsoft is reportedly prepared to abandon high-stakes negotiations with OpenAI over the future of their strategic alliance, according to a report by the Financial Times published Wednesday. The talks have hit a stalemate over key disagreements, particularly regarding the size and structure of Microsoft’s future equity stake in the artificial intelligence company.

Sources familiar with the matter told the FT that Microsoft may pause or terminate discussions if no breakthrough is reached. In the meantime, Microsoft plans to lean on its existing commercial agreement, which guarantees access to OpenAI’s technologies, including its ChatGPT models, through 2030.

The situation comes amid increased tension between the two AI powerhouses. A separate Wall Street Journal report earlier this week revealed that OpenAI executives have considered accusing Microsoft of anticompetitive practices related to their ongoing partnership. Both companies are reportedly negotiating changes to Microsoft’s investment terms, including its future stake in OpenAI.

Despite the friction, both sides released a joint statement earlier this week affirming their intention to collaborate:

“Talks are ongoing, and we are optimistic we will continue to build together for years to come.”

Microsoft’s multi-billion dollar investment into OpenAI has positioned it as a central player in the AI boom, helping the company compete aggressively with rivals like Google and Amazon. The partnership has powered Microsoft’s integration of OpenAI models into products like Copilot in Microsoft 365 and Azure OpenAI Service.

Meanwhile, OpenAI is seeking approval from Microsoft—its dominant backer—to convert into a public-benefit corporation, a structural change the startup believes would facilitate greater capital raising flexibility.

The evolving rift highlights the complex interdependence between Big Tech firms and rapidly-scaling AI startups, raising questions about governance, control, and long-term alignment in the sector.