OpenAI faced a significant challenge in retaining top talent amid a fierce recruitment battle initiated by Meta, which offered substantial financial incentives to AI specialists. To counter this, OpenAI allocated $6 billion in stock-based compensation, raising average employee stock rewards to $1.5 million—34 times higher than pre-IPO standards at similar tech companies. The changes also eliminated the six-month vesting cliff, allowing employees to earn shares immediately. Currently, stock compensation constitutes 46% of OpenAI’s $13 billion annual revenue, a stark contrast to the 6% seen in established tech firms. This percentage is expected to rise as OpenAI expands its workforce and accelerates AI model development through 2030. The ongoing competition among Meta, OpenAI, and Google underscores the urgency in attracting top researchers, with OpenAI’s leadership prioritizing talent retention even amidst potential financial dilution. This strategic move reflects OpenAI’s commitment to maintaining its edge in the rapidly evolving AI landscape.
Source link
Meta Urges OpenAI to Increase Salaries with $6 Billion Stock Compensation Initiative — TradingView News
Share
Read more