Meta's AI talent war raises questions about strategy
OpenAI CEO Sam Altman recently complained that Meta has offered US$100 million (RM419 million) bonuses to lure engineers away from his company, where they would join teams already earning substantial salaries.
Several OpenAI employees have accepted Meta's offers, prompting executives at the ChatGPT maker to scramble to retain their best talent.
'I feel a visceral feeling right now, as if someone has broken into our home and stolen something,' Chief Research Officer Mark Chen wrote in a Saturday Slack memo obtained by Wired magazine.
Chen said the company was working 'around the clock to talk to those with offers' and find ways to keep them at OpenAI.
Meta's recruitment drive has also landed Scale AI founder and former CEO Alexandr Wang, a Silicon Valley rising star, who will lead a new group called Meta Superintelligence Labs, according to an internal memo, whose content was confirmed by the company.
Meta paid more than US$14 billion for a 49 per cent stake in Scale AI in mid-June, bringing Wang aboard as part of the acquisition. Scale AI specialises in labelling data to train AI models for businesses, governments, and research labs.
'As the pace of AI progress accelerates, developing superintelligence is coming into sight,' Zuckerberg wrote in the memo, which was first reported by Bloomberg.
'I believe this will be the beginning of a new era for humanity, and I am fully committed to doing what it takes for Meta to lead the way,' he added.
US media outlets report that Meta's recruitment campaign has also targeted OpenAI co-founder Ilya Sutskever, Google rival Perplexity AI, and the buzzy AI video startup Runway.
Seeking ways to expand his business empire beyond Facebook and Instagram, Zuckerberg is personally leading the charge, driven by concerns that Meta is falling behind competitors in generative AI.
The latest version of Meta's AI model, Llama, ranked below heavyweight rivals in code-writing performance on the LM Arena platform, where users evaluate AI technologies.
Meta is integrating new recruits into a dedicated team focused on developing 'superintelligence' — AI that surpasses human cognitive abilities.
'Mercenary' approach
Tech blogger Zvi Moshowitz believes Zuckerberg had little choice but to act aggressively, though he expects mixed results from the talent grab.
'There are some extreme downsides to going pure mercenary... and being a company with products no one wants to work on,' Moshowitz told AFP.
'I don't expect it to work, but I suppose Llama will suck less.'
While Meta's stock price approaches record highs and the company's valuation nears US$2 trillion, some investors are growing concerned.
Institutional investors worry about Meta's cash management and reserves, according to Baird strategist Ted Mortonson.
'Right now, there are no checks and balances' on Zuckerberg's spending decisions, Mortonson noted.
Though the potential for AI to enhance Meta's profitable advertising business is appealing, 'people have a real big concern about spending.'
Meta executives envision using AI to streamline advertising from creation to targeting, potentially bypassing creative agencies and offering brands a complete solution.
The AI talent acquisitions represent long-term investments unlikely to boost Meta's profitability immediately, according to CFRA analyst Angelo Zino. 'But still, you need those people on board now and to invest aggressively to be ready for that phase' of generative AI development.
The New York Times reports that Zuckerberg is considering moving away from Meta's Llama model, possibly adopting competing AI systems instead. — AFP
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New Straits Times
2 hours ago
- New Straits Times
Malaysian SMEs picking up on AI to drive growth
KUALA LUMPUR: Malaysia's digital ambitions, as outlined in the MyDIGITAL blueprint, aim to position the country as a regional digital economy leader. However, that vision will remain aspirational if local businesses, particularly small and medium enterprises (SMEs), do not accelerate their adoption of artificial intelligence (AI) and other digital technologies. As neighbours such as Indonesia, Vietnam and Singapore continue to advance toward AI-enabled futures, Malaysian SMEs are uniquely positioned to seize this moment and lead a smarter, more inclusive wave of digital transformation. A new study by Lazada, in partnership with Kantar, titled Bridging the AI Gap: Online Seller Perceptions and Adoption Trends in Southeast Asia, reveals a key challenge: Malaysian sellers recognise AI's potential but have yet to fully embrace it. The study, which surveyed 1,214 online sellers across Malaysia, Indonesia, the Philippines, Singapore, Thailand and Vietnam, found that 69 per cent of Malaysian respondents say they are familiar with AI, but only 26 per cent have adopted AI tools, representing a significant gap between awareness and application. This gap is not merely a technology issue. It reflects a broader set of challenges shaped by uneven access to education, infrastructure constraints, generational divides and varying levels of trust and understanding around AI. Beyond that, the findings also reveal that businesses are not standing still. Many are also carefully evaluating AI opportunities that align with their specific capacities and business models. Malaysian SMEs are increasingly aware of tools ranging from generative AI for content creation and marketing to chatbots and predictive analytics. Technologies like ChatGPT have helped bring AI into mainstream business conversations. Today, it is no longer confined to niche technical circles, but has entered boardrooms, marketing meetings and daily operations. Yet, despite growing awareness, adoption remains relatively modest. Many SMEs are in the exploratory phase, testing AI tools but not yet integrating them into core workflows. Why? The report identifies several consistent barriers: perceived high costs, implementation complexity and a longstanding preference for tried-and-tested processes. While 87 per cent of Malaysian sellers acknowledge AI's long-term cost-saving potential, 64 per cent still cite cost and setup hurdles. Only half of the respondents believe AI is truly useful, well below the regional average of 61 per cent. Williams Business Consultancy Sdn Bhd director Dr Geoffrey Williams noted that SMEs tend to delay adoption because the business value of AI is not always immediately apparent. "They focus directly on their existing business model, which is often low tech. However, there are huge possibilities for SMEs in AI adoption, and sharing platforms will likely be one of the main routes to this," he told Business Times. Beyond perception, Malaysia also faces structural issues. The absence of a dedicated national AI governance framework places SMEs in a grey area, particularly under evolving data protection laws such as the Personal Data Protection Act 2010 (Act 709). Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid pointed out that digital adoption among SMEs was sluggish before the Covid-19 pandemic. However, the crisis served as a catalyst, pushing many businesses into "survival mode," where hybrid models combining physical and online operations became the norm. "Even with the digital economy now paramount to SMEs, however, the AI adoption is slower than projected. This is attributed to a lack of knowledge, financial resources and resistance to another change in the business," he said. Add to that infrastructural gaps and talent shortages, and it becomes clearer why some SMEs hesitate to move beyond the experimentation phase. Generational dynamics also play a role. While older business owners may be more resistant to digital disruption, younger entrepreneurs, despite being digitally savvy, often lack access to funding or the technical support needed to deploy AI meaningfully. Still, the picture is far from discouraging. Encouragingly, the Lazada-Kantar report finds that many businesses are already on the path to AI adoption, albeit at different stages of readiness. The study categorises sellers into three distinct groups based on their level of AI adoption across five core areas of business operations, which include logistics, product management, marketing, customer service, and workforce management. At the forefront are the AI Adepts. These businesses have successfully integrated AI across most or all of these five core business functions, and are already reaping tangible benefits. From enhanced operational efficiency and cost savings to smarter decision-making and improved customer engagement. They are well-positioned for sustainable growth and better equipped to scale in a competitive, digital-first market. Behind them are the AI Aspirants, which represent a significant portion of Malaysian sellers. These businesses recognise the value of AI and are keen to adopt it, but have yet to fully embed AI tools into their operations. Many are in early testing or partial implementation phases, and with the right support, training, and access to practical tools, they have strong potential to progress toward becoming AI Adepts. Finally, the study identifies the AI Agnostics. These businesses have minimal or no meaningful AI adoption across the five key operational areas. They tend to rely on traditional processes and may be more cautious or constrained by barriers such as cost concerns, lack of expertise, or uncertainty about the relevance of AI to their business model. Only 15 per cent of Malaysian sellers fall into the AI Adept category, below the regional average of 24 per cent. However, 43 per cent are identified as AI Aspirants, businesses open to AI but still in need of better tools, training, and support to move forward. This group presents a major growth opportunity. With the right guidance and accessible platforms, Malaysia can quickly expand its base of AI-ready SMEs. Platforms like Lazada are playing a vital role in closing the gap by offering embedded AI features that are easy to adopt and designed for day-to-day operations. Lazada is no longer just a digital marketplace; it is becoming a strategic AI partner that helps SMEs transition into the digital economy with minimal friction. By integrating AI directly into the seller experience, Lazada offers SMEs a low-risk, high-impact opportunity to test and scale intelligent technologies without needing large budgets or advanced technical skills. For example, Lazada IM Shop Assistant (LISA) enables sellers to provide 24/7 customer support by allowing them to program automated responses to common buyer inquiries, such as questions about delivery, returns or product details. Lazzie, a chatbot powered by generative AI technology, serves as a personal shopping assistant for buyers by offering real-time product information, recommendations and guidance during their shopping journey. Meanwhile, the Lazada Business Advisor dashboard helps sellers make smarter decisions by giving them real-time insights on pricing, promotions and inventory. It is like having a built-in guide to spot opportunities and fine-tune strategies as the business grows. For SMEs, these are not just fancy tools — they are practical stepping stones that make AI part of everyday business. Williams acknowledges this approach and stresses that AI adoption will be market-driven, and there is only a limited role for government. "Government agencies such as Malaysia Digital Economy Corporation already provide infrastructure for platforms with significant potential for gross domestic product and employment," said Williams. Aimi adds that while workshops and training sessions are available through government and trade associations, they often lack scale and sustained funding. "Many SMEs are not aware of the availability of online e-commerce platforms due to limited exposure. They may know the word 'AI' but do not understand what it is or how to apply it in their business operations," added Aimi. The stakes are real, but so is the opportunity. While Malaysia may trail some of its neighbours in AI adoption today, the ecosystem for progress is growing. Tools, platforms and support networks are becoming more accessible, and awareness is steadily rising. AI is no longer a futuristic ideal — it is a practical, powerful resource that businesses of any size can begin leveraging now to work smarter, grow faster and compete more effectively. With the right mindset and continued support from platforms like Lazada, Malaysian SMEs are not just capable of catching up — they have the potential to lead. The question is no longer whether AI will be adopted. It is how inclusively, confidently and strategically we embrace it. And for many Malaysian businesses, that journey is already well underway.
Malay Mail
3 hours ago
- Malay Mail
Trump threatens Japan with up to 35pc tariff, says trade deal unlikely before July 9
WASHINGTON, July 2 — US President Donald Trump said Tuesday a trade deal with Japan was unlikely before the July 9 deadline, threatening to raise tariffs on Japanese imports to 30 or 35 per cent. Speaking to reporters aboard Air Force One, Trump criticised Japan's reluctance to accept imports of US rice, as well as the imbalance in auto trade between the two countries. 'I'm not sure we're going to make a deal,' Trump said. 'I doubt it with Japan, they're very tough.' While Trump imposed a sweeping 10 per cent tariff on imports from most trading partners in April, he unveiled — then paused — higher rates on dozens of economies to allow room for negotiations. This pause expires July 9, meaning the elevated rates are due to kick in next week if countries fail to reach agreements with Washington to avert them. To date, only two pacts have been announced. One was a broad framework with Britain and the other a deal to temporarily lower steep tit-for-tat duties with China. Trump said he was going to write a letter to Japan, asking them to 'pay a 30 per cent, 35 per cent or whatever the number is that we determine' because of the 'big trade deficit' with Tokyo. 'It's very unfair to the American people,' he said. Japan, a key US ally and its biggest investor, is subject to the same 10 per cent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium. Ryosei Akazawa, Tokyo's trade envoy, told Japanese reporters in Washington last month that some progress had been made during a fifth round of talks with the United States. However, he added: 'We've not been able to find a point of agreement yet'. — AFP
The Star
3 hours ago
- The Star
'Writing is thinking': do students who use ChatGPT learn less?
PARIS: When Jocelyn Leitzinger had her university students write about times in their lives they had witnessed discrimination, she noticed that a woman named Sally was the victim in many of the stories. "It was very clear that ChatGPT had decided this is a common woman's name," said Leitzinger, who teaches an undergraduate class on business and society at the University of Illinois in Chicago. "They weren't even coming up with their own anecdotal stories about their own lives," she told AFP. Leitzinger estimated that around half of her 180 students used ChatGPT inappropriately at some point last semester – including when writing about the ethics of artificial intelligence (AI), which she called both "ironic" and "mind-boggling". So she was not surprised by recent research which suggested that students who use ChatGPT to write essays engage in less critical thinking. The preprint study, which has not been peer-reviewed, was shared widely online and clearly struck a chord with some frustrated educators. The team of MIT researchers behind the paper have received more than 3,000 emails from teachers of all stripes since it was published online last month, lead author Nataliya Kosmyna told AFP. 'Soulless' AI essays For the small study, 54 adult students from the greater Boston area were split into three groups. One group used ChatGPT to write 20-minute essays, one used a search engine, and the final group had to make do with only their brains. The researchers used EEG devices to measure the brain activity of the students, and two teachers marked the essays. The ChatGPT users scored significantly worse than the brain-only group on all levels. The EEG showed that different areas of their brains connected to each other less often. And more than 80% of the ChatGPT group could not quote anything from the essay they had just written, compared to around 10% of the other two groups. By the third session, the ChatGPT group appeared to be mostly focused on copying and pasting. The teachers said they could easily spot the "soulless" ChatGPT essays because they had good grammar and structure but lacked creativity, personality and insight. However Kosmyna pushed back against media reports claiming the paper showed that using ChatGPT made people lazier or more stupid. She pointed to the fourth session, when the brain-only group used ChatGPT to write their essay and displayed even higher levels of neural connectivity. Kosmyna emphasised it was too early to draw conclusions from the study's small sample size but called for more research into how AI tools could be used more carefully to help learning. Ashley Juavinett, a neuroscientist at the University of California San Diego who was not involved in the research, criticised some "offbase" headlines that wrongly extrapolated from the preprint. "This paper does not contain enough evidence nor the methodological rigour to make any claims about the neural impact of using LLMs (large language models such as ChatGPT) on our brains," she told AFP. Thinking outside the bot Leitzinger said the research reflected how she had seen student essays change since ChatGPT was released in 2022, as both spelling errors and authentic insight became less common. Sometimes students do not even change the font when they copy and paste from ChatGPT, she said. But Leitzinger called for empathy for students, saying they can get confused when the use of AI is being encouraged by universities in some classes but is banned in others. The usefulness of new AI tools is sometimes compared to the introduction of calculators, which required educators to change their ways. But Leitzinger worried that students do not need to know anything about a subject before pasting their essay question into ChatGPT, skipping several important steps in the process of learning. A student at a British university in his early 20s who wanted to remain anonymous told AFP he found ChatGPT was a useful tool for compiling lecture notes, searching the internet and generating ideas. "I think that using ChatGPT to write your work for you is not right because it's not what you're supposed to be at university for," he said. The problem goes beyond high school and university students. Academic journals are struggling to cope with a massive influx of AI-generated scientific papers. Book publishing is also not immune, with one startup planning to pump out 8,000 AI-written books a year. "Writing is thinking, thinking is writing, and when we eliminate that process, what does that mean for thinking?" Leitzinger asked. – AFP
