Meta technology chief Bosworth implies company has lost focus
Andrew Bosworth AKA Boz, an advertising expert for Facebook, gives a talk at the Online Marketing Rockstars marketing trade show in Hamburg, Germany, 03 March 2017. Photo: Christian Charisius/dpa | usage worldwide (Photo by Christian Charisius/picture alliance via Getty Images)
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Meta technology chief Andrew “Boz” Bosworth, one of Facebook’s earliest employees, wrote on his personal blog over the weekend that the company was more focused in its initial days, and he described some of the problems that come with getting big.
In a post titled “Focus,” Bosworth contrasted the years of startup life, when he got little sleep, kept a poor diet and had “no hobbies,” with the mature company that has many people weighing in on product features and enough money to pay for less important things.
“Resources and time were so tight that you could feel the weight of all the things you weren’t working on,” wrote Bosworth, who started the post by saying he was “something like” the 10th engineer at the company. “You had real conviction that the thing you were doing was the most important thing.”
Bosworth’s post landed just days before Meta’s fourth-quarter earnings reports, which is scheduled to land after the close of trading on Wednesday. The company is expected to report its third consecutive quarterly sales drop, with analysts projecting another decline in the first quarter. Meta lost two-thirds of its value last year.
Bosworth was promoted to CTO in 2021, replacing Mike Schroepfer, who had been with the company since 2008. Bosworth is overseeing Meta’s ambitious and costly endeavor to develop the digital world of the metaverse, which CEO Mark Zuckerberg has said will define the company’s future.
While he acknowledged that he doesn’t miss startup life, “I do miss the profound sense of focus,” Bosworth wrote.
With limited money and resources, “we were constantly tight on servers, on memory, and on bandwidth,” he said.
But over time, Facebook experienced some product sprawl, putting effort into too many different projects. He used nonprofits as an example, noting that in the early days employees would ask Zuckerberg to support a group or cause.
An avatar of Mark Zuckerberg, chief executive officer of Meta Platforms Inc., speaks during the virtual Meta Connect event in New York, US, on Tuesday, Oct. 11, 2022.
Michael Nagle | Bloomberg | Getty Images
“Mark would always say no,” Bosworth wrote. “He would explain that it isn’t that we don’t care about good causes, it is that our comparative advantage wasn’t going to be making good donations.”
That changed as the company got bigger, more employees asked for Facebook contribute and there was enough money to do it. And considering that there’s nothing bad about supporting nonprofits, “we just stopped saying ‘no.'”
“I picked a cultural example here but the exact same thing happens in our products at a larger scale and with higher stakes,” Bosworth wrote.
Bosworth doesn’t specify any areas where the current version of Meta lacks focus, and he says the company has a “core feature offering that is strong.” He did offer an example of how the company can still get off track.
“A small feature idea comes up that serves a subset of the market,” Bosworth wrote. “But it isn’t too hard to do and it isn’t a bad thing, so we indulge. “
He continued, “Repeat that thought process a hundred times and you have a cluttered UI, a large team, a slow product, and no obvious path forward.”
Meta investors have been urging the company to focus on its core online ad business, which has come under pressure from a number of challenges, including a weak economy and increased competition. Brad Gerstner, the CEO of Altimeter Capital and a Meta investor, wrote in an open letter to the company in October that the company needs to “get fit and focused,” and he was critical of the hefty investment in the nascent metaverse.
In November, Meta said it would lay off over 11,000 employees as part of the company’s plans to cut costs amid a tough digital advertising market.
The X logo appears on a phone, and the xAI logo is displayed on a laptop in Krakow, Poland, on April 1, 2025. (Photo by Klaudia Radecka/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Elon Musk‘s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion, according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
The AI firm last month acquired X in an all-stock deal that valued xAI at $80 billion and the social media platform at $33 billion.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said on X, announcing the deal. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Read the full Bloomberg story here.
— CNBC’s Samantha Subin contributed to this report.
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.
WATCH: Gemini delivering well for Google, says Check Capital’s Chris Ballard
CNBC’s Jennifer Elias contributed to this report.
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