Zuckerberg’s Billion-Dollar Bet: Can Poaching Solve Meta’s AI Crisis?

Can Talent Raids Help Meta Catch Up in the AI Race?

Good Morning from San Francisco,

Meta just poached four more OpenAI researchers. Mark Zuckerberg's $100 million talent raid continues after Llama 4 crashed in April.

OpenAI's research chief fired back with a memo Saturday. "Someone has broken into our home," Mark Chen wrote. He promised better pay to stop the bleeding.

The math is brutal. Maybe a few dozen people can actually make $70 billion data centers work. When you're fighting over Berkeley PhDs who share WhatsApp groups, prices explode.

Zuckerberg keeps "The List" of targets. He reviews their papers personally. Sometimes he hosts meetings at his house.

Can money buy innovation? Meta's about to find out.

Stay curious,

Marcus Schuler


Zuckerberg’s Pricey Bet: Can Talent Raids Help Meta Catch Up in the AI Race?

Meta hired four more OpenAI researchers this week, adding to an exodus that has OpenAI's leadership scrambling to keep their team intact. The latest recruits—Shengjia Zhao, Jiahui Yu, Shuchao Bi, and Hongyu Ren—bring the total departures to at least eleven researchers in recent weeks.

OpenAI Chief Research Officer Mark Chen sent a blunt memo to staff Saturday expressing his frustration. "I feel a visceral feeling right now, as if someone has broken into our home and stolen something," he wrote. Chen promised the company was "recalibrating comp" and working around the clock to retain talent.

The hiring war started after Meta's Llama 4 AI model flopped in April. Mark Zuckerberg apparently decided the solution was to raid competitors with compensation packages worth up to $100 million. He's personally reviewing research papers, reaching out to candidates, and hosting meetings at his homes.

The Desperate Math of AI Talent

The talent pool is tiny. Elite AI researchers typically have PhDs from Berkeley, Stanford, or Carnegie Mellon. Many know each other from the same graduate programs or shared houses in San Francisco. When you're fighting over maybe a few dozen people who can actually make $70 billion data centers useful, the price gets crazy fast.

Zuckerberg maintains "The List"—his compilation of target researchers—and uses a WhatsApp group called "Recruiting Party" to coordinate with executives. The personal touch reflects how small and interconnected this world really is.

Money vs. Mission

OpenAI CEO Sam Altman pushed back on the offers, calling them "crazy" and claiming Meta focuses too much on guaranteed compensation rather than mission. "I'm really happy that, at least so far, none of our best people have decided to take them up on that," he said.

But the departures keep coming. Meta's approach follows a familiar Silicon Valley pattern: when you fall behind in crucial technology, try to buy your way back by poaching the best people. Sometimes it works. Often it doesn't.

Why this matters:

  • Meta's willingness to pay NBA-level money for researchers shows how far behind it feels in the AI race
  • The tiny talent pool means every hire reshuffles the competitive landscape—this isn't just about individual moves, it's about whether money can actually buy innovation

Read on, my dear:

Meta Hires 4 More OpenAI Researchers in $100M Talent War
Meta hired four more OpenAI researchers this week, escalating Zuckerberg’s talent war with $100M packages. The exodus follows Meta’s disappointing Llama 4 launch as the CEO personally hunts AI stars to close the innovation gap.
Meta Poaches OpenAI Researchers With $100M Bonuses
Meta poaches three OpenAI researchers with $100 million signing bonuses as Zuckerberg builds a “superintelligence” team. Sam Altman dismisses the blitz, but departures suggest money talks in AI’s talent war.
Meta’s $10B AI Reset After Talent Exodus to Competitors
Meta spent months claiming its AI was “crushing it” while losing most of its research team. Now Zuckerberg is spending $10+ billion to fix problems he said didn’t exist. The crisis shows how AI forces companies to admit failure or fall behind.

AI Image of the Day

Credit: midjourney
Prompt:
a miniature handcrafted set of a nostalgic rural train station shot with a 100mm macro lens f/2.8, the main focus is a needle-felted man holding a bouquet while gazing up at a woman leaning from a train window, both sharing a tender moment, hyper-detailed wool textures, cinematic and tranquil, lifelike proportions

Trump kills Canada's digital tax in three days

Canada scrapped its digital services tax Sunday night, hours before tech companies faced a $3 billion bill. The move came after President Trump canceled trade talks Friday, calling the tax "a direct attack on our country."

The tax would have hit Google, Meta, Amazon, and Apple with a 3% charge on revenue from Canadian users. Payments were retroactive to 2022, creating a massive bill due Monday.

Trump's threat worked fast. Prime Minister Mark Carney called him Sunday, and both agreed to restart talks with a July 21 deadline.

This shows how economic leverage beats policy independence. Canada depends on the US for 75% of its exports and $762 billion in annual trade. When Trump threatened new tariffs, Canada had little choice but to fold.

The tax was meant to address a real problem. Tech companies make billions from Canadian users but pay minimal Canadian taxes by routing profits elsewhere. The tax would have generated $4.2 billion over five years.

But facing Trump's ultimatum, Canada chose trade access over tax revenue. Finance Minister François-Philippe Champagne will introduce legislation to kill the tax entirely.

Trump already hit Canada with 50% steel tariffs, 25% auto tariffs, and 10% on most imports. The digital tax gave him another pressure point.

The July 21 deadline leaves little time for complex negotiations. But Canada's retreat on digital taxes suggests it will make other concessions to avoid Trump's tariff threats.

Why this matters:

  • Economic dependence limits policy choices, even on domestic issues like taxation
  • Trump's threat-based approach works when countries can't afford to lose US market access

Read on, my dear:

Canada Drops Tech Tax After Trump Threatens Trade Talks
Trump killed Canada’s tech tax with one threat. After he canceled trade talks Friday, Canada dropped its $3B digital levy on Google, Meta, and Amazon by Sunday night. The quick surrender shows how economic leverage trumps sovereignty.

🧰 AI Toolbox

Postwise: How to Craft and Schedule Engaging Tweets

Postwise writes Twitter content for you and posts it when your audience is most active. The AI learns what works for your followers and suggests topics that get engagement. You can schedule weeks of content in advance.

Tutorial:

  1. Sign up for a Postwise account
  2. Connect your Twitter account
  3. Click "AI Tools" to get tweet ideas
  4. Choose a content type like "Viral Tweets" or "Questions"
  5. Enter a topic for the AI to write about
  6. Pick your favorite tweet from the options and edit if needed
  7. Schedule the tweet to post at the best time

Sample Prompt: Write a tweet about the future of artificial intelligence.

URL: https://postwise.ai/


AI & Tech News

GOP Bill Kills Solar Tax Credits, Threatens AI Data Centers

Senate Republicans added a surprise tax on future solar and wind projects while ending electric vehicle credits by September, threatening over 500 gigawatts of planned energy projects that tech companies need for AI data centers. Tesla CEO Elon Musk called the bill "utterly insane" as it would force his customers to pay up to $7,500 more for electric cars while handing China a competitive advantage in clean energy markets.

Apple Plans Budget MacBook with iPhone Chip Instead of Mac Processor

Apple will start making a cheaper MacBook in late 2025 using the A18 Pro chip from the iPhone 16 Pro instead of the usual Mac processors, according to analyst Ming-Chi Kuo. The budget laptop will keep the same 13-inch screen as the current MacBook Air but cost less than the $999 entry price, with Apple planning to make 5-7 million units in 2026 and offering colorful cases in silver, pink, and yellow.

Trump Builds Secret National Citizenship Database for Election Officials

The Trump administration built a searchable national citizenship database that lets election officials check if voters are citizens, using Social Security and immigration records for the first time in U.S. history. The system was developed without public notice or debate, raising privacy concerns as it creates what experts call America's first national citizen registry through the backdoor.

White House Gets 60+ Companies to Pledge AI Education for Kids

The White House announced Monday that over 60 companies committed to providing AI education materials to K-12 students over the next four years, marking a sharp shift from Biden's focus on AI safety to Trump's emphasis on embracing the technology. Companies like Google, Microsoft, OpenAI, and NVIDIA will provide funding, curriculum, and training as part of Trump's executive order to prepare students for an "AI-enabled economy" and maintain American tech dominance.

Apple's F1 Movie Hits Box Office Gold But Faces Expensive Reality Check

Apple finally scored a box office win with its F1 movie starring Brad Pitt, earning $55-58 million in its opening weekend and marking the company's biggest theatrical success. The film cost at least $200 million to make (likely closer to $300 million with marketing), meaning it needs over $700 million worldwide to break even, and Apple had to resort to aggressive marketing tactics like push notifications that annoyed customers who pay premium prices to avoid such promotions.

Swedish AI Startup Tandem Health Lands $50M for Doctor Assistant

Swedish startup Tandem Health raised $50 million to build AI assistants that help doctors record patient visits and generate medical notes automatically. The company serves over 1,000 healthcare organizations across Europe and plans to create a "medical ChatGPT" that follows strict data privacy laws, aiming to let doctors focus on patients instead of computers all day.

Australia Beats US and China at Creating Billion-Dollar Startups Per Investment Dollar

Australia creates 1.22 unicorns for every $1 billion invested since 2000, nearly double the US rate and the highest globally, according to new research. The country's startups raised just $3.4 billion in 2024 compared to America's $24 billion, but companies like Canva and Atlassian show Australian founders can build global winners despite being far from Silicon Valley and having smaller local markets.


Better prompting

Today: Flash Sale Subject Lines That Actually Convert

Create 5 compelling email subject lines for a 24-hour flash sale on [specific beauty product/category]. Each subject line should:

  • Create urgency without being pushy or using excessive caps/exclamation marks
  • Convey exclusivity to make subscribers feel special
  • Be 30-50 characters to ensure full visibility on mobile devices
  • Include at least one power word (limited, exclusive, secret, insider, etc.)
  • Avoid spam trigger words

For each subject line, briefly explain the psychological trigger it uses and why it would be effective for the target audience.


🚀 AI Profiles: The Companies Defining Tomorrow

Tandem Health: Swedish AI Startup Automates Medical Notes


Tandem Health builds AI that listens to doctor visits and writes clinical notes automatically. The Stockholm startup lets physicians focus on patients instead of paperwork. 🩺

The Founders
Founded 2023 by CEO Lukas Saari (ex-McKinsey, Spotify), CTO Oliver Åstrand (ex-Google X, Uber), and partner Oscar Boldt-Christmas (McKinsey veteran). Started with 5 people, now 50 employees. Built in Stockholm to solve Europe's healthcare admin nightmare.

The Product
AI scribe records consultations and drafts structured medical notes before patients leave. Handles multiple languages, generates referrals and discharge letters automatically. Integrates with hospital systems across six European countries. Core strength: built for European regulations and workflows, not generic US solutions.

The Competition
Faces US giants like Microsoft's Nuance and Google's ambient tools, plus startups like Suki AI. But competitors struggle with European languages and GDPR compliance. Tandem owns the European medical AI documentation space by design. Beat legacy speech software at major Nordic healthcare chain Aleris.

Financing
Raised $9.5M seed (Northzone, OpenAI/DeepMind alumni) in 2024. Just closed $50M Series A led by Kinnevik, valuing company at $180-270M. Serious money for a two-year-old startup. Plans to double headcount and expand across Europe.

The Future ⭐⭐⭐⭐⭐
Building "medical ChatGPT" and proactive AI that handles follow-ups automatically. Vision: doctors see patients all day without touching computers. Market timing is perfect - healthcare drowning in paperwork, AI finally works. Strong execution, massive European opportunity, and founders thinking generational scale.

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