The CEO's strategy to combat the AI threat was directly inspired by Clayton Christensen's "Innovator's Dilemma." He created an autonomous team with different incentives, shielded from the core business, to foster radical innovation—a practical application of the well-known business theory.

Large enterprises navigate a critical paradox with new technology like AI. Moving too slowly cedes the market and leads to irrelevance. However, moving too quickly without clear direction or a focus on feasibility results in wasting millions of dollars on failed initiatives.

A strategic conflict is emerging at Meta: new AI leader Alexander Wang wants to build a frontier model to rival OpenAI, while longtime executives want his team to apply AI to immediately improve Facebook's core ad business. This creates a classic R&D vs. monetization dilemma at the highest levels.

To balance AI hype with reality, leaders should create two distinct teams. One focuses on generating measurable ROI this quarter using current AI capabilities. A separate "tiger team" incubates high-risk, experimental projects that operate at startup speed to prevent long-term disruption.

A strategic rift has emerged at Meta. Long-time executives like Chris Cox want the new AI team to leverage Instagram and Facebook data to improve core ads and feeds. However, new AI leader Alexander Wang is pushing to prioritize building a frontier model to compete with OpenAI and Google first.

While traditionally creating cultural friction, separate innovation teams are now more viable thanks to AI. The ability to go from idea to prototype extremely fast and leanly allows a small team to explore the "next frontier" without derailing the core product org, provided clear handoff rules exist.

Meta has physically and organizationally separated its new, high-paid AI researchers in 'TBD Labs' from its existing AI teams. By issuing separate access badges, Meta has created an internal caste system that prevents collaboration and is likely to cause significant morale problems and knowledge silos within its most critical division.

Meta's strategy of poaching top AI talent and isolating them in a secretive, high-status lab created a predictable culture clash. By failing to account for the resentment from legacy employees, the company sparked internal conflict, demands for raises, and departures, demonstrating a classic management failure of prioritizing talent acquisition over cultural integration.

A fundamental tension within OpenAI's board was the catch-22 of safety. While some advocated for slowing down, others argued that being too cautious would allow a less scrupulous competitor to achieve AGI first, creating an even greater safety risk for humanity. This paradox fueled internal conflict and justified a rapid development pace.