Meta launches Meta Compute with plans for tens of gigawatts of AI infrastructure
Meta is launching Meta Compute, an initiative to build tens of gigawatts of AI infrastructure this decade and hundreds more to power its AI models and data centers. The company named Santosh Janardhan, Daniel Gross and Dina Powell McCormick to lead technical architecture, capacity strategy and government partnerships.
1. Reality Labs Workforce Reduction
Meta Platforms has initiated plans to reduce headcount within its Reality Labs division by approximately 10% to 15%, impacting roughly 1,500 to 2,250 employees out of a 15,000-strong unit. The cuts, expected to be announced this week, focus primarily on teams developing VR headsets and the Horizon Worlds social platform. Reality Labs has incurred cumulative losses exceeding $70 billion since 2020, and the reduction follows repeated restructuring efforts as Meta shifts capital allocation toward core AI initiatives.
2. Launch of Meta Compute AI Infrastructure
On January 11, CEO Mark Zuckerberg unveiled Meta Compute, a strategic initiative aimed at scaling the company’s AI infrastructure capacity. Meta plans to construct tens of gigawatts of dedicated data-center power this decade, with a long-term target of hundreds of gigawatts. The program is spearheaded by three executives: Santosh Janardhan, head of global infrastructure, overseeing technical architecture and datacenter operations; Daniel Gross, leading long-term capacity strategy and supplier partnerships; and Dina Powell McCormick, president and vice chairman, tasked with governmental and financial collaboration to secure energy and investment for expansion.
3. Performance Review Overhaul with Checkpoint Program
Beginning mid-2026, Meta will implement the Checkpoint performance program, replacing its existing review system with four discrete rating tiers. Employees rated 'Outstanding'—targeted at 20% of staff—will receive a 200% individual bonus multiplier, while the top Meta Award offers a 300% multiplier for exceptional contributions. The 'Excellent' tier, encompassing 70% of employees, carries a 115% multiplier. Lower tiers, covering 10% combined, apply 50% or zero multipliers. The company intends for more frequent feedback cycles and streamlined recognition to reinforce its high-impact culture.
4. High-Profile Executive Appointment
Meta named Dina Powell McCormick, a former deputy national security advisor in the Trump administration and assistant secretary of state under President George W. Bush, as president and vice chairman. Powell McCormick, who joined Meta’s board last year, will guide strategy execution for the company’s multi-billion-dollar technology investments, cultivate strategic partnerships and oversee expansion of Meta’s investment capacity. Her appointment underscores the company’s emphasis on political and regulatory engagement as it pursues ambitious AI and energy initiatives.