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Yann Le Cun meta AI
Meta’s chief AI scientist, Yann LeCun (Julien De Rosa/Getty Images)

Tension emerges between Meta’s AI teams

Discontent between Meta’s AI research teams is growing, according to a report by The Information, at a critical time for Meta’s effort to get back into the AI race.

Long before Mark Zuckerberg pivoted Meta away from its quest for virtual reality to “bring personal superintelligence to everyone,” Meta’s research group FAIR was a powerhouse of important AI research, in addition to working on earlier iterations of the company’s Llama AI models. The group is headed by OG AI legend Yann LeCun, who is a pioneer in neural networks and computer vision.

The FAIR group operates like an academic research lab within Meta, publishing research papers and sharing work with the wider community. But since Meta’s stumble with its Llama 4 AI model, Zuckerberg went on an unprecedented hiring spree of AI all-stars, poaching top researchers from Meta’s competitors to build out a new “Superintelligence team.”

Now, The Information is reporting that there are new tensions between the AI groups, which could have huge ramifications for Meta’s AI research.

Per the report, several changes to how FAIR operates are causing friction. A new layer of review has been imposed on FAIR’s research before publication, and the company has been pressuring the group to direct its work more toward Meta products rather than the wider AI research community.

Adding to this, LeCun appeared to be sidelined when 28-year-old college dropout Alexandr Wang was hired from Scale AI and named chief AI officer. Later, when Meta recruited Shengjia Zhao, the cocreator of ChatGPT, away from OpenAI, Zhao was named “chief scientist of Meta Superintelligence Labs.” Reportedly, the title was given to Zhao to appease him after he threatened to return to OpenAI, going so far as to sign HR paperwork with his former employer.

According to two Information sources, LeCun has discussed with colleagues the possibility of quitting the role. And the nine-figure salaries offered to the Superintelligence team recruits aren’t helping. The rocky start to Meta Superintelligence Labs raises questions about how quickly the new strategy can get Meta back into the AI race.

Bad vibes

Last week, Meta announced “Vibes,” a feed of AI-generated videos that appears in the Meta AI app. But the announcement was quickly dwarfed by the attention on OpenAI’s invite-only Sora app, featuring short videos generated from its new Sora 2 video generation model, which appears to set a new, high standard for the quality of such technology.

The buzz around Sora is real: it’s now No. 3 on the iOS App Store free apps leaderboard despite being invitation-only, while Meta AI sits at No. 97.

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After Tesla earnings, prediction markets think unsupervised FSD is less likely than ever to be rolled out this year

Tesla’s unsupervised full self-driving technology, which would autonomously ferry passengers around without a human driver having to pay attention, is supposed to help catapult the electric vehicle company’s valuation further into the stratosphere. It was also supposed to be available this year, but prediction markets participants, as well as former Tesla self-driving leaders, no longer think that will happen.

On Teslas earnings call this week, CEO Elon Musk said the company now had “clarity” on achieving unsupervised full self-driving — something he’s repeatedly said would be available at least in some markets this year.

The comments seemed to give Polymarket prediction markets participants some clarity. There, the market-implied probability that Tesla will release unsupervised FSD this year reached its lowest point since the event contract was opened in May.

The odds of it happening had been pretty high up until late June, when Tesla’s long-awaited robotaxi launched with a safety driver in the passenger seat. The unsupervised FSD event contract specifies the feature can have “no requirement for human intervention.”

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Banks prepare record $38 billion debt financing to fund Oracle-tied data centers

Banks led by JPMorgan and Mitsubishi UFJ are preparing a $38 billion debt offering to fund two Oracle-tied data centers in Texas and Wisconsin, Bloomberg reports. The projects, developed by Vantage Data Centers, will support Oracle’s $500 billion Stargate AI infrastructure push with OpenAI and Nvidia.

The loans — $23.25 billion for Texas and $14.75 billion for Wisconsin — are expected to mature in four years, price about 2.5 percentage points higher than the benchmark rate, and mark the largest AI infrastructure financing to date.

Oracle executives recently said that the company anticipates cloud gross margins will reach 35% and that it expects to see $166 billion in cloud infrastructure revenue by FY 2030.

Oracle is up 1.5% premarket.

The loans — $23.25 billion for Texas and $14.75 billion for Wisconsin — are expected to mature in four years, price about 2.5 percentage points higher than the benchmark rate, and mark the largest AI infrastructure financing to date.

Oracle executives recently said that the company anticipates cloud gross margins will reach 35% and that it expects to see $166 billion in cloud infrastructure revenue by FY 2030.

Oracle is up 1.5% premarket.

tech

Google rises on official announcement of Anthropic deal worth “tens of billions”

Google has made its deal to expand AI compute to Anthropic, reported earlier this week by Bloomberg, official. In order to train and serve its Claude model, Anthropic has agreed to pay Google Cloud “tens of billions of dollars” to access up to 1 million tensor processing units, or TPUs, as well as other cloud services.

Google, of course, has a 14% stake in Anthropic, making this one of the many circular AI deals happening at the moment.

“Anthropic and Google have a longstanding partnership and this latest expansion will help us continue to grow the compute we need to define the frontier of AI,” Anthropic CFO Krishna Rao said in the press release. “Our customers — from Fortune 500 companies to AI-native startups — depend on Claude for their most important work, and this expanded capacity ensures we can meet our exponentially growing demand while keeping our models at the cutting edge of the industry.”

The announcement has sent Google up again, more than 1% premarket.

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Report: Snap seeking $1 billion to finance its AR glasses division in “existential” fundraise

Snap is down more than 1% this morning following news that the company is attempting to raise $1 billion for its AR glasses unit in what someone told Sources.news was an “existential” fundraise.

A Snap spokesperson countered, “We do not need to raise money to execute against our plans to publicly launch Specs in 2026, but remain open to opportunities that could accelerate our growth.”

Multiple investors are involved in the talks, including Saudi Arabia’s Public Investment Fund, according to Sources.news. The report also noted that Snap plans to turn the unit that makes its Specs glasses into an independent subsidiary à la Google’s Waymo “that can continue raising capital from investors.”

Snap plans to produce about 100,000 units of next year’s Specs, pricing them around $2,500.

The beleaguered stock saw quite a bit of retail interest last month, amid r/WallStreetBets chatter that its low nominal price made it a potential acquisition target.

Multiple investors are involved in the talks, including Saudi Arabia’s Public Investment Fund, according to Sources.news. The report also noted that Snap plans to turn the unit that makes its Specs glasses into an independent subsidiary à la Google’s Waymo “that can continue raising capital from investors.”

Snap plans to produce about 100,000 units of next year’s Specs, pricing them around $2,500.

The beleaguered stock saw quite a bit of retail interest last month, amid r/WallStreetBets chatter that its low nominal price made it a potential acquisition target.

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