Replacing people with AI doesn’t seem to be that easy to do, if Meta can be seen as an example.

Reuters reports that at an internal town hall Thursday, CEO Mark Zuckerberg told staff that the pace of AI agent development had not “accelerated in the way” as executives had previously expected them to.

Earlier this year, Meta laid off some 8,000 employees — approximately 10 percent of its corporate workforce — and reassigned another 7,000 to various AI groups, including one called Agent Transformation, Bloomberg reported.

During this week’s meeting, Zuckerberg apparently commented on these job cuts — noting that they were not as “clean” as they should have been. The cuts were made because top officials at the company “were worried that we weren’t going to move fast enough ‌to adapt” to the changing landscape of the tech industry, Zuckerberg reportedly added.

The corporate leader also apparently said that the perceived upside of the new AI-focused company structure hadn’t “come to ​fruition yet,” although he said that he believed the company would begin to see improvements from its AI investments during the next three to six months. Several other investigative reports have depicted Meta’s months-old AI unit as a soul-crushing gulag, according to some of the engineers assigned to it.

Meta has invested heavily in AI, and is expected to spend as much as $145 billion on AI infrastructure this year, Reuters reports.

TechCrunch reached out to Meta for comment.

Militaries routinely send satellites to fly by rival vehicles and suss out their capabilities, but scaling up this kind of reconnaissance is increasingly seen by the US military as a challenge best handled by the private sector.

That’s why two space startups, True Anomaly and Rocket Lab, completed a rendezvous mission for the US Space Force last week so complex, it was like something out of Top Gun. Their two rival satellites met up in orbit, close enough for one to capture imagery of the other.

The exercise, dubbed Victus Haze, demonstrated the close inspection of a space vehicle soon after it arrived in orbit, a necessity in a world where the US, Russia and China are deploying novel space weapons.

“China and Russia launch capabilities to space on a regular basis and part of the Space Force’s job is to understand what those capabilities are,” True Anomaly CEO Even Rogers, a veteran of the US military’s space efforts, told TechCrunch. “Right now we have gaps in our collection capability.”

The June mission saw Rocket Lab, a rocket-building rival to SpaceX that recently announced its acquisition of Iridium, launch a spacecraft called Puma just 16 hours and 42 minutes after receiving notice, which is notable because most rocket launches are buttoned up months in advance.

A Jackal spacecraft built by True Anomaly was waiting in orbit to intercept it. As part of the exercise, the company didn’t know where Puma would arrive in space, but used onboard sensors to find and identify its target from 2,000 kilometers away. The Jackal then flew close to the target — exactly how close is classified — and orbited it, capturing imagery of different parts of the vehicle, before returning to its starting point in orbit.

True Anomaly’s CEO said that, outside of NASA and Space Force space flight missions with humans, “this is probably the most complex rendezvous and proximity operation between two spacecraft in modern history.”

Bringing together two spacecraft in orbit, where they’re both moving at speeds approaching 17,500 mph, is no easy challenge. Previous private demonstrations, like those performed by Northrop Grumman’s maintenance satellites or Astroscale’s orbital garbage hunting missions, operate on slower time frames.

And now things get interesting: The two companies are prepared to perform new exercises in the weeks ahead with increasing difficulty, which could include Rocket Lab’s Puma trying to evade True Anomaly’s Jackal and performing its own inspection maneuvers.

Founded in 2022 by Rogers and a cadre of former military space experts, True Anomaly’s plan has to been to build both the hardware and software to enable the new tasks assigned to the US Space Force when it was created in 2019. After several years of development missions, last month’s demonstration has begun to realize that vision.

“That’s the secret sauce of this company,” said Seth Winterroth, a partner at Eclipse Ventures who sits on True Anomaly’s board. “It’s not one spacecraft architecture or one piece of software or a certain set of payloads — it’s a deep, deep understanding of what tactics and doctrine look like in this domain.”

True Anomaly has raised just over $1 billion, including a $650 million round in March. Now, the company will look to compete for a number of task orders, particularly in the Space Force’s $6.2 billion Andromeda program, which looks to the private sector for exactly this kind of maneuverable reconnaissance.

“Flight heritage is everything, and demonstrated capability is what speaks the loudest with these opportunities,” Rogers said.

Nvidia competitor Etched announced this week that TSMC had manufactured its first chip earlier this year. While the four-year-old startup valued at $5 billion is getting ready to ship systems powered by that chip to customers later this summer, scaling production may prove challenging. Like other chip designers, Etched must compete for limited capacity at TSMC’s Taiwan factories.

Copper Sky Capital, one of Etched early investors, is hopeful that the chip maker will find a solution to its manufacturing constraints by eventually producing chips at Arizona’s TSMC facility. When the four-year-old VC firm invested in Etched’s $120 million Series A two years ago, founder Jack Selby secured an allocation in part by promising to help the startup eventually reshore its chip fabrication to Arizona.

Selby, a former PayPal exec and longtime managing director to Peter Thiel’s family office, Thiel Capital, founded Phoenix-based Copper Sky in 2021 (formerly known as AZ-VC). The firm’s first $115 million fund focused primarily on startups based in Arizona and the Southwest. Selby’s thesis was that most coastal startups, particularly those based in California, Massachusetts, and New York, are grossly overpriced compared to companies popping up in his region. However, Selby saw an opportunity to bridge the gap in the other direction by helping California-based hardware startups move their production to Arizona.

Selby credits Copper Sky’s investment in Etched — an otherwise hard-to-access startup — to his influential role in Arizona’s economy. As a board member of the Arizona Commerce Authority, Selby is deeply involved in recruiting out-of-state businesses to set up manufacturing operations in the region.

“When Copper Sky invested with Etched, the company clearly understood our connectivity to the Arizona semiconductor industry, and in particular the local TSMC GIGAFAB,” Selby told TechCrunch.

While Copper Sky has recently expanded its focus beyond the Southwest to include non-traditional venture hubs nationwide, Selby said that the firm is also interested in backing hardware companies, including in the defense sector, that can set up manufacturing operations in Arizona. 

The firm is expected to soon have more capital to invest in those higher-priced coastal companies, and those throughout the United States. Copper Sky is currently raising a $300 million second fund, according to a regulatory filing.