Meta poaches a CEO from a listed company to advance its enterprise AI initiative, but its stock price dropped 5%.

According to TradingBeats’ monitoring, after Meta (META.US) announced the establishment of its enterprise AI business division and appointed former MongoDB CEO Chirantan “CJ” Desai to lead the unit, its stock closed down roughly 4.79% on the day, ending at $715.62. The enterprise AI platform Meta is launching will integrate products including the Muse AI assistant, Meta Business Agent, Muse API, and Muse Code, aiming to further expand the capabilities of its Llama model to enterprise clients. Desai, who previously served as MongoDB’s CEO and held roles at enterprise tech firms like ServiceNow and Cloudflare, will now drive Meta’s enterprise AI business development. The market has yet to embrace the move. The Information analyst Martin Peers noted that while Meta boasts a large base of enterprise advertising clients that could help promote its AI products, the enterprise AI market is already highly crowded, with competitors including Microsoft, Google, OpenAI, Anthropic, and traditional enterprise software firms all vying for corporate customers. Additionally, Meta’s past forays into enterprise software have not gone smoothly—its workplace collaboration tool Workplace was ultimately shut down. Entering the market via Muse and its new enterprise AI platform means Meta must prove it can extend its advertising ecosystem advantage to the enterprise software business. The market remains cautiously watching whether Meta can translate its AI capabilities into a new source of enterprise revenue.