Meta Restructures AI Division to Accelerate Product Development and Compete in AI Race

Reviewed byNidhi Govil

8 Sources

Meta has split its AI department into two teams: an AI Products team and an AGI Foundations unit, aiming to streamline development and stay competitive in the rapidly evolving AI landscape.

Meta's Strategic AI Restructuring

Meta, the tech giant behind Facebook, Instagram, and WhatsApp, has announced a significant restructuring of its artificial intelligence (AI) division. The company has split its AI department into two distinct teams: an AI Products team and an AGI (Artificial General Intelligence) Foundations unit 1. This move comes as Meta intensifies its efforts to stay competitive in the rapidly evolving global AI race.

New Team Structure and Leadership

Source: PYMNTS

Source: PYMNTS

According to an internal memo from Meta's Chief Product Officer, Chris Cox, the new structure aims to give each organization more ownership while minimizing team dependencies 3. The AI Products team, led by Connor Hayes, will focus on consumer-facing efforts, including AI features within Facebook, Instagram, and WhatsApp, as well as Meta's new standalone AI app 1. This team will also be responsible for the Meta AI Assistant and AI Studio 2.

The AGI Foundations unit, co-led by Ahmad Al-Dahle and Amir Frenkel, will concentrate on broader AI development initiatives, including improvements to Meta's Llama models and advancements in reasoning, multimedia, and voice technologies 4.

Motivations Behind the Restructuring

This reorganization follows similar adjustments made in 2023 and comes amid rising pressure from competitors like OpenAI, Google, and ByteDance 4. The Wall Street Journal reported earlier this month that unnamed senior Meta executives were "frustrated" over a delayed rollout for the largest version of its Llama 4 AI model, dubbed Behemoth 2. This restructuring appears to be a response to these challenges, aiming to accelerate the development and release of new AI products and features.

Impact on Workforce and Operations

Source: Dataconomy

Source: Dataconomy

Meta has emphasized that this restructuring does not involve any job cuts 5. However, some internal leadership shifts are underway, with the company moving in leaders from other parts of the organization 3. The company's core research arm, FAIR (Fundamental AI Research), remains separate, although one multimedia-focused subgroup within FAIR will shift to the AGI Foundations team 4.

Meta's AI Initiatives and Competition

Source: Axios

Source: Axios

As part of its efforts to compete in the AI space, Meta recently launched a Llama for Startups program to encourage early-stage companies to use their products for generative AI applications 1. The company's LlamaCon event in April was largely focused on demonstrating Meta's ability to compete with OpenAI 1.

However, Meta faces challenges in talent retention, with Business Insider reporting notable departures, including some employees moving to French AI firm Mistral 4. This restructuring may also be an attempt to address these concerns and create a more dynamic work environment for AI professionals.

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