Meta Stock Rises as AI Godfather LeCun Eyes €3 Billion Superintelligence Partnership

TLDR

• Meta’s Chief AI Scientist Yann LeCun is leaving at year-end to launch Advanced Machine Intelligence Labs, seeking €500 million in funding at a €3 billion valuation
• The new venture will focus on superintelligent AI systems using “world models” that train machines through visual learning rather than massive data inputs
• Meta will partner with LeCun’s startup but won’t invest, gaining access to commercialize new AI technologies developed by the company
• BofA Securities maintains a Buy rating and $810 price target for Meta stock, citing AI potential despite the stock’s 11% gain lagging behind Nasdaq’s 18% rise
• Meta’s upcoming LLM launch in first half of 2026 and expense guidance are identified as near-term catalysts for the stock

Meta stock edged higher as news broke that Yann LeCun, the company’s chief AI scientist, is preparing to launch a new artificial intelligence venture valued at €3 billion. The physicist, known as an “AI Godfather” and Turing Award winner, announced plans to leave Meta at the end of 2025.

Meta Platforms, Inc., META

LeCun is in early discussions to raise €500 million for his startup, Advanced Machine Intelligence Labs. Details about the venture will be revealed in January 2026. Alexandre LeBrun, founder of French health tech company Nabla and former Facebook AI research engineer, is expected to serve as chief executive.

The new company will focus on creating superintelligent AI systems. LeCun wants to develop “world models” where machines achieve human-level intelligence through visual learning instead of processing massive datasets. This approach represents a different path in AI development compared to current methods.

Meta won’t invest money in LeCun’s startup. Instead, the two will form a partnership. This arrangement allows Meta to access and commercialize technologies developed by Advanced Machine Intelligence Labs.

Partnership Benefits for Meta

The partnership structure gives Meta potential access to cutting-edge AI research without direct financial investment. The company can tap into LeCun’s work as it tries to catch up with competitors like Alphabet in the AI race. Meta has its own ambitious AI plans that require fresh innovation.

BofA Securities maintained its Buy rating on Meta stock with an $810 price target. The firm pointed to AI potential as a key reason for its positive stance. However, Meta stock has underperformed this year with an 11% gain compared to the Nasdaq’s 18% rise and Alphabet’s 56% jump.

The underperformance came despite Meta’s 2026 earnings per share estimates increasing 16% since early 2025. The price-to-earnings ratio contracted in the second half of 2025 as AI sentiment weakened and investors worried about 2026 operating expenses.

Upcoming Catalysts

BofA Securities identified two near-term catalysts for Meta stock. The company’s 2026 expense guidance could provide clarity on AI spending. Meta also plans to launch a large language model in the first half of 2026.

Long-term investors are watching Meta’s AI investment returns across core apps, advertising, and new business opportunities. The company has spent heavily on LLM development without creating a licensing revenue model. Management commentary on LLM build costs versus licensing could improve investor sentiment.

Citizens maintained its Market Outperform rating with a $900 price target. Piper Sandler kept its Overweight rating at $840, naming Meta its top large-cap pick. The firm sees value in Meta’s AI investments despite near-term expense concerns.

Meta recently updated its AI glasses software with improved conversation focus in noisy settings and Spotify integration. The company is testing “Instagram for TV” to let users watch Reels on Amazon Fire TV devices in the United States.

LeCun’s departure and new venture come as Meta pushes forward with AI development. The partnership allows both parties to benefit from research advances. LeCun’s company aims to announce full details of its operations and funding in January 2026.

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