Altimeter’s Brad Gerstner explains why Meta lags in AI race

Altimeter Capital founder Brad Gerstner has said that Meta is not currently among the leading players in the artificial intelligence (AI) market, confirming that his firm has exited its major stake in the company.

Speaking to CNBC, Gerstner explained why Meta was notably missing from his list of top investment picks for 2026. Altimeter first invested in the Mark Zuckerberg-led company in late 2022, benefiting from a sharp rally that saw Meta’s share price climb from around $90 to over $700. 

That surge followed the company’s aggressive focus on cost-cutting and operational efficiency, a move Gerstner had openly supported at the time.

However, Gerstner said Meta is now undergoing a challenging transition as it attempts to fully capitalise on AI. 

While he acknowledged recent steps such as rebooting the company’s AI research efforts, he stressed that Meta currently lags behind rivals in the sector. “The fact of the matter is, they’re not market leaders today in AI,” he said.

Despite this, Gerstner described Meta as a potential long-term beneficiary of AI. Still, he prefers to allocate capital to companies with clearer near-term growth and lower valuations in what he called a “stock pickers’ market.”

Altimeter has instead shifted its focus to AI infrastructure firms, including Nvidia and Taiwan Semiconductor Manufacturing Company. 

Gerstner also highlighted the scale of the AI investment boom, noting that global tech firms’ data centre spending is expected to exceed $500 billion by 2026.