MegaETH developer MEGA cuts staff by 20%, commits $30 million to AI products
In brief
- MEGA cut 20% of its staff after months of restructuring, co-founder Shuyao Kong said.
- Kong didn't disclose a headcount or say when the layoffs happened.
- MEGA committed $30 million to products on MegaETH, including AI services.
- Kong didn't directly link the layoffs to the new AI strategy.
- Public inference market planned for December, according to Kong.
Who left, and what Kong didn't say
Kong said the organization reorganized its teams, and staff who worked on its blockchain, wallet, ecosystem support and communications left as a result. Those are four separate functions. It's not a cut confined to one department.
“We’ve brought together new capabilities and reorganized our teams, a process that has resulted in a 20% reduction in our staff,” Kong said.
That's about as specific as it got. Kong didn't say how many employees were affected or when the layoffs happened, so there's no headcount to report (20% of an undisclosed total is still an undisclosed number). She said MEGA's founders and core engineering team remain committed to the organization.
The $30 million AI push
MEGA has committed $30 million to developing products on the MegaETH network, including AI services. Kong didn't directly link the staff reduction to that spending, and the two shouldn't be read as cause and effect based on what she's said so far.
The core idea sits in a whitepaper. Co-founders Yilong Li and Lei Yang described a proposed inference market meant to give users access to competing AI service providers, rather than tying them to a single vendor. It's aimed at two specific concerns: whether providers actually use the models they advertise, and how they handle customer data.
Both are trust problems. The whitepaper's pitch is that a market structure on MegaETH can address them.
What's next
Kong said MEGA plans to launch a public inference market in December.
That leaves an Ethereum layer-2 organization whose departures included blockchain and wallet staff now putting $30 million toward products on its own network, AI services among them. How many people that work now falls to, MEGA hasn't said.
Frequently asked questions
What is MegaETH's proposed inference market?
MegaETH co-founders Yilong Li and Lei Yang described it in a whitepaper as a market meant to give users access to competing AI service providers. It's aimed at concerns about whether providers use the models they advertise and how they handle customer data. Kong said MEGA plans to launch a public version in December.
Were MEGA's layoffs caused by its move into AI?
Kong didn't directly link the layoffs to the new strategy. MEGA has committed $30 million to developing products on MegaETH, including AI services, but she didn't say the 20% staff reduction resulted from that commitment.
How many MEGA employees lost their jobs?
Kong said the reorganization resulted in a 20% reduction in staff, but she didn't disclose how many employees were affected or when the layoffs occurred. Departing staff had worked on blockchain, wallet, ecosystem support and communications.
