what more embarrassing is that they do this to poach AI talent because they massively behind on AI races, like they literally still to the extend of king of social media (fb,instragram,whatsapp etc)
they should do better given how much data, money, resources they have tbh
My main point is that $250M sounds like a huge number, and that it shows how extreme the value of AI is seen. But that's exactly the point. They want to be perceived as thinking AI is worth extreme amounts of capital, suggesting it will ROI even more. Otherwise they wouldn't be spending $250M on one guy right? But here comes the catch, they don't think that one person is worth $250M, they can print money for free and claim this guy is worth this much without having to pay for it. Effectively diluting existing shareholder value. This whole thing works because Meta is seen by investors as a growth stock, they have 10-100x larger earnings to share values than mature stocks like Ford. They are printing money to be able to print more money in the future. Follow up reading [1]
In either case, the fact that the stock was created is reported to investors, and investors know that the creation reduces the value of every existing share of Meta, which is the feedback mechanism which restricts how much money or value Meta can get out of the creation of new shares of its stock.
You're right that they don't need to do this.
also most tech company do this originally as tax loophole for big tech
its nothing to do with printing money or another theory conspiracy like another commenter says
It’s typical in startups for early employees to not have thís protection
VCs demand it
