OpenAI is leading the tech industry in employee compensation, offering an average of $1.5 million in stock compensation to its 4,000 employees. This figure surpasses Google’s pre-IPO employee pay sevenfold and is 34 times higher than the compensation of workers from 18 other major tech firms prior to their public offerings. The company is escalating stock packages to attract and retain top AI talent amidst fierce competition, especially following hiring maneuvers by Meta Platforms’ Mark Zuckerberg. This pressure has led to additional bonuses for certain staff, enhancing existing operating losses and diluting current shareholders’ stakes. Projections indicate stock-based pay could soar to $3 billion annually by 2030. Meanwhile, SoftBank’s recent $40 billion investment solidifies its 10% stake in OpenAI, further solidifying the company’s financial position. OpenAI’s stock compensation is projected to reach 46% of revenue by 2025, highlighting its aggressive compensation strategy in the AI sector.
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