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Robots beat human records at Beijing half-marathon Palantir posts mini-manifesto denouncing inclusivity and ‘regressive’ cultures TechCrunch Mobility: Uber enters its assetmaxxing era Cracks are starting to form on fusion energy’s funding boom Blue Origin successfully re-uses a New Glenn rocket for the first time ever Tesla brings its robotaxi service to Dallas and Houston VC Ron Conway says he has a ‘rare form of cancer’ AI chip startup Cerebras files for IPO Anthropic’s relationship with the Trump administration seems to be thawing The App Store is booming again, and AI may be why “Tokenmaxxing” is making developers less productive than they think Hackers are abusing unpatched Windows security flaws to hack into organizations Zoom teams up with World to verify humans in meetings Gigs turns your concert history into a personal live music archive Chef Robotics escaped the robot cooking graveyard and says it’s thriving — here’s why Uber will now pick up your returns from your doorstep Anthropic launches Claude Design, a new product for creating quick visuals Google’s AI Mode can now help you find products in stock nearby Bluesky confirms DDoS attack is cause of continued app outages Bluesky confirms DDoS attack is cause of continued app outages Netflix plans to add a vertical video feed, use AI for recommendations SaySo is a new short-form video app that aims to restore users’ trust in news Loop raises $95M to build supply chain AI that predicts disruptions Are we tokenmaxxing our way to nowhere? New leaders, new fund: Sequoia has raised $7B to expand its AI bets Netflix co-founder and chair Reed Hastings to leave board Upscale AI in talks to raise at $2B valuation, says report Physical Intelligence, a hot robotics startup, says its new robot brain can figure out tasks it was never taught From the Startup Battlefield stage to the International Space Station: geCKo Materials built a sticky product Slash, a Ramp competitor founded by teenagers, raises $100M at $1.4B valuation OpenAI takes aim at Anthropic with beefed-up Codex that gives it more power over your desktop European police email 75,000 people asking them to stop DDoS attacks Anthropic CPO leaves Figma’s board after reports he will offer a competing product Google now lets you explore the web side-by-side with AI Mode Two Americans sentenced for helping North Korea steal $5 million in fake IT worker scheme InsightFinder raises $15M to help companies figure out where AI agents go wrong AI traffic to US retailers rose 393% in Q1, and it’s boosting their revenue too Roblox’s AI assistant gets new agentic tools to plan, build, and test games Google adds Nano Banana-powered image generation to Gemini’s Personal Intelligence Google is now targeting bad ads over bad actors You’ve heard of hybrid cars. Now meet a hybrid cement plant. Runway CEO says AI could help Hollywood make 50 films instead of one $100M blockbuster Meta raises Quest 3 and Quest 3S prices due to RAM shortage Canva’s AI assistant can now call various tools to make designs for you Fashion retailer Express left customers’ personal data and order details exposed to the internet This simulation startup wants to be the Cursor for physical AI DeepL, known for text translation, now wants to translate your voice Amazon-backed X-energy files to raise up to $800M in IPO Ford EV and tech chief leaving automaker Wait, could they still actually break up Live Nation? 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Meta’s months-old AI unit is a soul-crushing gulag, say the engineers stuck inside it
Connie Loizos · 2026-06-13 · via TechCrunch

Anyone who works at Meta or knows anyone who works at Meta will tell you the same thing: It is not a happy place, particularly given the seemingly endless layoffs the company has executed over the last few years — cuts that have only accelerated as the company funnels billions into AI.

Now, a new report in Wired suggests the company’s Applied AI team is on the verge of revolt.

The drama kicked off when someone hijacked a livestreamed, employee-only presentation this week with an expletive-laden meltdown, demanding that attendees tell a senior Meta AI executive that he was “a piece of sh*t.” One presenter reportedly covered their face with their hands.

That outburst, Wired reports, reflects simmering rage inside the three-month-old unit of roughly 6,500 engineers and product managers who have been tasked with supporting the company’s AI research ambitions.

A report last month in Business Insider shed light on how many employees originally learned they’d be moved into the group — through a surprise email, a process that one self-described draftee described later on Reddit as “quite random.” According to an internal announcement reviewed by BI, the reason they were enlisted is that Meta’s AI models still lacked the knowledge to outperform humans at technical tasks like coding. “For agents to understand how people actually complete everyday tasks using computers, we need to train our models on real examples,” the announcement read.

In a leaked audio recording from an internal meeting that month, CEO Mark Zuckerberg offered his reasoning for drafting employees rather than outside contractors. Alexandr Wang — who sold his data-labeling startup Scale AI to Meta for $14.3 billion before taking the role of chief AI officer and heading up Meta Superintelligence Labs — knows the data-labeling world well, Zuckerberg said. And candidly, the average Meta employee has “significantly higher” intelligence than third-party contractors, he added, making them the better choice.

Employees describe being forced into the group with no real choice: join or quit. Many call themselves “draftees.” Their assigned work? Generating puzzles and coding problems to train AI models. “It’s literally the gulag,” one employee told Wired. “Most people find the work soul-crushing,” said another.

It’s not just the Applied AI group where morale is lousy. More than 1,600 Meta employees company-wide have reportedly signed a petition protesting a program that monitors their clicks and keystrokes for AI training data. The mood across the company is dark enough that Meta’s chief product officer, Chris Cox, felt compelled to address the “brutal” environment on a call with employees this week, said Wired.

TechCrunch has reached out to Meta for comment.

According to earlier reports, the Applied AI team is led by Maher Saba, a 12-year veteran of Meta who was previously a vice president in its Reality Labs division, the division that burned through $83 billion on the metaverse before Meta moved on to AI. The new organization reports up to Meta CTO Andrew Bosworth.

Originally, the unit was structured in such a way that up to 50 employees reported to one manager.

Zuckerberg, for his part, reportedly addressed the broader situation in an internal memo Friday, acknowledging that recent changes had “caused distress” and admitting the company had made mistakes that it plans to address. According to Wired, he added in his memo that “Meta’s north star is to be the best place for the most talented people in the world to make an impact.”

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Loizos has been reporting on Silicon Valley since the late ’90s, when she joined the original Red Herring magazine. Previously the Silicon Valley Editor of TechCrunch, she was named Editor in Chief and General Manager of TechCrunch in September 2023. She’s also the founder of StrictlyVC, a daily e-newsletter and lecture series acquired by Yahoo in August 2023 and now operated as a sub brand of TechCrunch.

You can contact or verify outreach from Connie by emailing connie@strictlyvc.com or connie@techcrunch.com, or via encrypted message at ConnieLoizos.53 on Signal.

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