Yann LeCun, known as one of the godfathers of modern artificial intelligence and one of the first AI visionaries to join the company then known as Facebook, is leaving Meta.
LuCun said in a LinkedIn post on Wednesday that he plans to create a startup that specializes in a kind of AI technology that researchers have described as world models, analyzing information beyond web data in order to better represent the physical world and its properties.
“I am creating a startup company to continue the Advanced Machine Intelligence research program (AMI) I have been pursuing over the last several years with colleagues at FAIR, at NYU, and beyond,” LeCun wrote. “The goal of the startup is to bring about the next big revolution in AI: systems that understand the physical world, have persistent memory, can reason, and can plan complex action sequences.”
Meta will partner with LeCun’s startup.
The departure comes at a time of disarray within Meta’s AI unit, which was dramatically overhauled this year after the company released the fourth version of its Llama open-source large language model to a disappointing response from developers. That spurred CEO Mark Zuckerberg to spend billions of dollars recruiting top AI talent, including a June $14.5 billion investment in Scale AI to lure the startup’s 28-year-old CEO Alexandr Wang, now Meta’s new chief AI officer.
LeCun, 65, joined Facebook in 2013 to be director of the FAIR AI research division while maintaining a part-time professorial position at New York University. He said in the LinkedIn post that the “creation of FAIR is my proudest non-technical accomplishment.”
“I am extremely grateful to Mark Zuckerberg, Andrew Bosworth, Chris Cox, and Mike Schroepfer for their support of FAIR, and for their support of the AMI program over the last few years,” LeCun said. “Because of their continued interest and support, Meta will be a partner of the new company.”
At the time, Facebook and Google were heavily recruiting high-level academics like LeCun to spearhead their efforts to produce cutting-edge computer science research that could potentially benefit their core businesses and products.
LeCun, along with other AI luminaries like Yoshua Bengio and Geoffrey Hinton, centered their academic research on a kind of AI technique known as deep learning, which involves the training of enormous software systems called neural networks so they can discover patterns within reams of data. The researchers helped popularize the deep learning approach, and in 2019 won the prestigious Turing Award, presented by the Association for Computing Machinery.
Since then, LeCun’s approach to AI development has drifted from the direction taken by Meta and the rest of Silicon Valley.
Meta and other tech companies like OpenAI have spent billions of dollars in developing so-called foundation models, particularly LLMs, as part of their efforts to advance state-of-the-art computing. However, LeCun and other deep-learning experts, have said that these current AI models, while powerful, have a limited understanding of the world, and new computing architectures are needed for researchers to create software that’s on par with or surpasses humans on certain tasks, a notion known as artificial general intelligence.
“As I envision it, AMI will have far-ranging applications in many sectors of the economy, some of which overlap with Meta’s commercial interests, but many of which do not,” LeCun said in the post. “Pursuing the goal of AMI in an independent entity is a way to maximize its broad impact.”
Besides Wang, other recent notables that Zuckerberg brought in to revamp Meta’s AI unit include former GitHub CEO Nat Friedman, who heads the unit’s product team, and ChatGPT co-creator Shengjia Zhao, the group’s chief scientist.
In October, Meta laid off 600 employees from its Superintelligence Labs division, including some who were part of the FAIR unit that LeCun helped get off the ground. Those layoffs and other cuts to FAIR over the years, coupled with a new AI leadership team, played a major role in LeCun’s decision to leave, according to people familiar with the matter who asked not to be named because they weren’t authorized to speak publicly.
Additionally, LeCun rarely interacted with Wang nor TBD Labs unit, which is compromised of many of the headline-grabbing hires Zuckerberg made over the summer. TBD Labs oversees the development of Meta’s Llama AI models, which were originally developed within FAIR, the people said.
While LeCun was always a champion of sharing AI research and related technologies to the open-source community, Wang and his team favor a more closed approach amid intense competition from rivals like OpenAI and Google, the people said.
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
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Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets : There was an ugly reversal in the market Thursday. Stocks soared for most of the morning in reaction to Nvidia ‘s strong quarter, bullish outlook on AI spending, and pushback that customers weren’t generating a sufficient return on their investment. Nvidia shares climbed as high as $196 on Thursday — a roughly 5% gain — and its gravitational pull helped lift other technology and AI-adjacent industrial stocks. The market’s gains pushed the S & P 500 into positive territory for the week. However, around 11 a.m. ET, the market began to fall rapidly, with technology and industrial names leading the decline. Nvidia gave up all of its gains and dropped 2%. Bitcoin hit its lowest level since late April. Notable defensive stocks like consumer staples held onto their gains, though. That resilience reinforces our decision to diversify further, which we did earlier this week , by adding Procter & Gamble to the portfolio. The S & P 500’s decline has pushed the index back toward the lows of its recent downturn, marking a roughly 5% pullback from its high. It remains to be seen whether Thursday’s reversal is a sign of investors continuing to retreat from risk assets or simply a retest of the recent downdraft. But Nvidia’s earnings report gave zero indication of a slowdown in demand for AI compute. Interest rate cut: Expectations for a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in December continue to fluctuate. One month ago, a rate cut seemed like a sure thing with a 98.8% probability, according to the CME FedWatch Tool . But the odds dropped to about 50% a week ago after a slew of hawkish commentary from Federal Reserve members. On Wednesday, the odds of a cut plummeted to 30% after the release of the October Fed minutes, which showed that the central bank was hesitant to lower rates again this year. But after the long-delayed September jobs data finally came out Thursday, the probability of a 25-basis-point reduction jumped to 40%. Although the economy added 119,000 jobs in September, more than double the forecasted figure, the unemployment rate ticked higher. The Fed is in a bind, trying to balance a softening labor market against the risk that a rate cut could reignite inflation. Up next: Gap, Ross Stores , Intuit , and Veeva Systems report after the closing bell. BJ’s Wholesale Club will post results Friday morning. On the economic data side, tomorrow we’ll get November’s S & P Global Flash PMI for Manufacturing and Services, along with the University of Michigan’s consumer sentiment survey. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Bitcoin dropped on Thursday to levels not seen in more than six months, as investors appeared to pull back exposure to riskier assets and weighed the prospects of another Federal Reserve rate cut next month.
The flagship digital currency fell to as low as $86,325.81, its lowest level since April 21. It last traded at $86,690.11.
The release of stronger-than-expected U.S. jobs data raised questions about whether the central bank would lower its benchmark overnight rate. The U.S. economy added 119,000 in September, well above the 50,000 economists polled by Dow Jones expected.
That report sent the probability of a December rate cut to around 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s pullback formed part of a broader cryptocurrency market decline. XRP was last down 2.3% on the day, and is below $2.00, while ether shed more than 3% to trade well below $3,000. Dogecoin was unchanged.
The world’s oldest crypto also led stocks lower, even after a blockbuster Nvidia earnings report. Traders who are heavily invested in AI-related stocks tend to also hold bitcoin, linking the two trades.
Bitcoin’s price has largely slid since a rash of cascading liquidations of highly leveraged crypto positions in early October.