Elon Musk Slams Mark Zuckerberg's Hiring Spree, Says xAI Has More 'Growth Potential' Than Meta Without 'Insane' Salaries

Elon Musk, in a recent post, lauded the growth potential of his start-up, xAI and its merit-based compensation system, amid Meta Platform’s (NASDAQ:META) aggressive AI hiring spree.

Musk Says Meta Engineers Joining xAI Amid Robust Growth

On Sunday, Musk replied to an X user’s post questioning Meta CEO Mark Zuckerberg‘s “desperate” hiring tactics. Musk posted about the influx of Meta engineers to xAI, stating that these transitions were happening without the need for “insane initial comp”. He also emphasized xAI’s “vastly more market cap growth potential than Meta” and its merit-based compensation system.

Musk’s comments also suggest that xAI, a company he is associated with, could pose a serious challenge to Meta’s AI dominance. The mention of a merit-based compensation structure could also signal a new trend in the industry, where exceptional talent is rewarded with higher compensation.

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Meta Strengthens AI Push With Key Hires From OpenAI, Apple And Beyond

Musk’s comments come at a time when Meta, under the leadership of Mark Zuckerberg, is making significant strides in the AI space. The company recently appointed Shengjia Zhao as Chief Scientist of its Superintelligence Labs, a move that Zuckerberg believes will play a crucial role in the development of the company’s AI unit.

Meta’s AI ambitions were further bolstered by the recruitment of Ruoming Pang from Apple, who was leading the AI model team responsible for training Cupertino’s foundational models. Pang’s departure from Apple to join Meta was seen as a significant win for the company’s AI efforts.

Meta’s strategy, however, has not been without criticism. Michael Dell, CEO of Dell Technologies Inc. (NYSE:DELL), warned that Meta’s AI hiring spree could lead to internal discontent among existing employees.

xAI Eyes Government Expansion While Musk Asserts xAI’s Capital Strength

Meanwhile, in July, Musk denied reports that his AI startup, xAI, is pursuing a new funding round, dismissing claims of a potential $170–$200 billion valuation. However, later it was reported that xAI is looking to raise up to $12 billion in debt to build a large-scale AI supercomputing infrastructure using Nvidia (NASDAQ:NVDA) chips.

Also, Musk’s xAI has “Grok for Government,” a suite of AI products tailored for U.S. government use, following multi-million-dollar defense contracts awarded by the Pentagon. The company also announced two new government partnerships, including product availability through the GSA schedule, enabling federal agencies to procure xAI tools.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.