Dustin Moskovitz, the CEO of Asana and one of the original founders of Facebook, is leaving the software company he founded in 2008.
TakeAway Points:
- Dustin Moskovitz, the CEO of Asana and one of the original co-founders of Facebook, will retire from the software company.
- Asana announced Moskovitz’s retirement on Monday as part of the company’s fourth-quarter earnings report.
- Asana’s stock price was down more than 25% in after-hours trading Monday.
Dustin Moskovitz leaves to rest
Asana announced Moskovitz’s upcoming departure on Monday as part of the company’s fiscal fourth-quarter earnings report, and its board has retained an executive search firm to help choose a new CEO. Moskovitz notified its board “of his intention to transition to the role of Chair when a new CEO begins,” the company said Monday.
“As I reflect on my journey since co-founding Asana nearly 17 years ago, I’m filled with immense gratitude,” Moskovitz said in a statement. “Creating and leading Asana has been more than just building a company—it’s been a profound privilege to work alongside some of the most talented minds in the industry.”
Asana said fourth-quarter sales rose 10% year over year to $188.3 million, which was in line with analysts’ estimates. The company said its adjusted earnings per share was breakeven, ahead of analysts’ estimates of a loss of one cent per share.
Asana said it expects fiscal first-quarter revenue of $184.5 million to $186.5 million, trailing analysts’ expectations of $191 million.
Asana’s stock price was down more than 25% in after-hours trading Monday.
Dustin Moskovitz in Asana
Moskovitz owns about 53% of the company’s outstanding shares, between his Class A and Class B holdings. He has substantially increased his ownership since the company’s public market debut in 2020.
In 2023, following a dip across the tech sector, Moskovitz said that “it’s been a wild two years in the market and there have been some interesting buying opportunities.”
He has a total net worth of more than $16 billion, according to Forbes, mostly because of his early Facebook stake.
Moskovitz said in his Monday retirement statement that he plans to focus more on his philanthropic endeavors, such as Good Ventures and Open Philanthropy, which cites “potential risks from advanced AI” among its various focus areas. In 2010, Moskovitz signed the Giving Pledge, a promise by some of the wealthiest people in the world to donate most of their fortunes to charity.
Good Ventures, which was co-founded by Moskovitz and his wife Cari Tuna, donated $30 million to ChatGPT maker OpenAI over a three-year period in 2017.
US Labor Department investigating Nvidia
The U.S. Department of Labor is investigating Scale AI, a data labeling startup backed by tech giants Nvidia, Amazon, and Meta, for its compliance with the Fair Labor Standards Act, the California-based firm said on Thursday.
The investigation is looking into Scale AI’s compliance with fair pay practices and working conditions and was initiated nearly a year ago under the former President Joe Biden’s administration, the company said.
The startup said over the last year it has worked with the department to explain its business model and the emerging artificial intelligence industry.
Founded in 2016, Scale AI provides vast amounts of accurately labeled data, which is pivotal for training sophisticated tools like OpenAI’s ChatGPT.
It also provides a platform for researchers to exchange AI-related information with contributors in more than 9,000 cities and towns.
“The feedback we get from contributors is overwhelmingly positive, and we have dedicated teams to ensure people are paid fairly and feel supported,” a spokesperson said.
Nearly all contributor payments are made on time, and the company resolves 90% of payment-related inquiries within three days, the company said.
The startup was valued at $14 billion in a late-stage funding round last year and counts AI firms OpenAI and Cohere, as well as Microsoft Morgan Stanley, among its clients.
