Behind the Scenes, Meta’s Board Is Battling With Mark Zuckerberg Over His Out-of-Control AI Spending
The directors have had enough. The post Behind the Scenes, Meta’s Board Is Battling With Mark Zuckerberg Over His Out-of-Control AI Spending appeared first on Futurism .
In recent months, tensions have escalated within Meta's board of directors as it grapples with CEO Mark Zuckerberg's excessive AI spending. The Wall Street Journal reports that the conflict has evolved into a "war over power and money," leaving the company's stock price plummeting by over 13 percent in the past month. The board is growing increasingly frustrated with Zuckerberg's demands for a massive stock-heavy pay raise, which has led to several members threatening to resign if he does not compromise.
Documents obtained by the WSJ indicate that a negotiation team of three board members began preparing a contingency plan as early as early September, considering resignation as a last resort if Zuckerberg refused to back down. The core of the dispute lies in Zuckerberg's exorbitant AI spending, which has plunged Meta into a negative free cash flow of $2.12 billion in the third quarter of 2026, the first time the company has experienced such financial strain since 2012.
Zuckerberg has defended his aggressive AI spending, claiming it is a necessary risk for the company's future, while acknowledging that the hyperscale approach to AI technology has created a dangerous financial bubble. Despite ongoing issues with Meta's AI products, including security failures and automation implementation challenges, Zuckerberg maintains that his strategy is the right one to prepare for the most optimistic scenarios.
As Meta's AI initiatives continue to face setbacks, it appears that Zuckerberg's ambitious plans are encountering the harsh realities of financial reality.
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