Plus: The scam infiltrating the Fortune 500.
Fortune 500 Digest with Alyson Shontell
Saturday, July 5, 2025
Foreword
Alyson Shontell
Editor-in-Chief

Good morning,

Mark Zuckerberg will not be counted out of the AI race. While the latest of Meta’s (No. 22) home-grown Llama large language models missed benchmarks and disappointed many users, there are very few problems billions of dollars can’t solve.

Zuckerberg is personally putting staggering pay packages worth hundreds of millions of dollars in front of a relatively tiny pool of top AI researchers.

We have written about the AI researcher talent wars previously at Fortune. This week, AI reporter Sharon Goldman dug into Zuckerberg’s determined plan to be the builder of artificial “superintelligence,” which he says will usher in a “new era for humanity.”

Meta investors are loving Zuckerberg’s take-no-prisoners approach to the AI race, with the stock up more than 20% this year. The company’s latest bombshell news: a memo announcing the addition of 11 AI researchers to Meta, most of them poached from rival OpenAI, the architect of ChatGPT.

Zuckerberg is striking at a particularly tough time for OpenAI, which is bickering with its biggest backer, Microsoft, while also trying to become a for-profit company—and meeting opposition from its cofounder turned foe, Elon Musk.

Meanwhile, others left behind at the companies Zuckerberg is raiding are reeling.

“OpenAI’s chief research officer Mark Chen described the situation as feeling like someone ‘breaking into our home,’ calling the talent loss ‘theft,’” Goldman writes.

Check out her story on Meta’s bold multibillion-dollar shopping spree to assemble a star-studded superintelligence team—and why the brash move could prove to be risky.

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Catch Up
Fortune 500 C-suite Power Moves
Boeing (No. 63) has appointed Jesus “Jay” Malave as EVP and CFO, effective Aug. 15. Danaher (No. 180) announced that Martin Stumpe will become the company’s Chief Technology and AI Officer, effective Oct. 1. Stanley Black & Decker (No. 283) is promoting COO Christopher Nelson to CEO, effective Oct. 1. He will succeed Donald Allan, Jr., who will transition to Executive Chair of the Board for one year until his retirement.
And more in this week's Fortune 500 Power Moves.
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Deals & Developments
  • Home Depot won the bidding war with QXO (No. 421) for building products distributor GMS and will acquire the company for $4.3 billion. Read more from Fortune Correspondent Phil Wahba on how this “purchase of an unsexy building products distributor is a prime example of smart M&A.” Meanwhile, Fortune Associate Editor Sydney Lake reports that some analysts say Home Depot overpaid.
  • AbbVie (No. 77) has agreed to acquire Capstan Therapeutics for $2.1 billion. This will include Capstan’s CPTX2309, a Phase 1 drug in development for the treatment of B cell-mediated autoimmune diseases, the Wall Street Journal reported.
  • Hewlett Packard Enterprise (No. 143) announced on Wednesday that it closed its acquisition of Juniper Networks (No. 658 on the Fortune 1000) for approximately $14 billion. Juniper makes hardware and software for network infrastructure. This also marks the departure of Juniper from the S&P 500, with Datadog (No. 996 on the Fortune 1000) taking its place on that index, as CNBC reported.
Overheard
“I enjoy what I do. If you don’t enjoy it, you can’t do it for very long.”
Aflac (No. 222) CEO Dan Amos on how he’s weathered his 35-year reign without burning out
In interviews with Fortune 500 CEOs:
  • “We had to do a significant cut in our workforce to match where we see the demand in our civil business, which is obviously painful, because we have a great workforce,” said Booz Allen Hamilton (No. 398) CEO Horacio Rozanski in a recent interview with Fortune. The government contractor cut 7% of its workforce after initial DOGE activity spooked the company’s investors earlier this year. Now, however, Rozanski says, “the discussion has moved away from a central DOGE conversation to an agency-by-agency efficiency discussion.”
On earnings calls:
  • Constellation Brands (No. 418), the only Fortune 500 company that held an earnings call this week, reported its net sales dropped 5.8% year over year to $2.52 billion. Company executives attributed this decline to customers spending less on beer. CFO Garth Hankinson reassured investors on the call, “we still believe that we can deliver margins in line with what we outlined in April,” even amid an impact on aluminum prices, beer import duties, and consumer demand driven by tariffs. Constellation’s portfolio of beer, wine, and spirits brands includes Modelo, Pacifico, Corona, and Kim Crawford, among others.
Earnings to watch in July include: Delta Air Lines (No. 70) and Conagra Brands (No. 350) on July 10; JPMorgan Chase (No. 11), Wells Fargo (No. 33), and Bank of New York (BNY) (No. 113) on July 15; Morgan Stanley (No. 40) on July 16; and more Fortune 500 companies.
Looking Ahead