OpenAI’s $1.5M per-employee paychecks redefine the AI talent war
OpenAI is offering its staff massive equity packages to stay ahead in the AI race. The company’s average compensation per employee now sits at around $1.5 million, far outpacing what other major tech firms have provided in the past. The scale of OpenAI’s equity rewards is unprecedented. Compared to 18 other large tech companies before their IPOs, its average payout is roughly 34 times higher. Even Google’s equity compensation in 2003 was over seven times smaller. New employees no longer face a six-month wait for their equity stake to take effect, speeding up access to rewards and making the company more attractive to top AI talent. The strategy targets leading researchers and engineers, ensuring OpenAI retains its edge in AI development. Yet the generosity comes at a cost. Massive equity packages increase operating losses and dilute the shares of existing investors. By 2030, annual equity compensation could hit $3 billion, a figure unmatched by any recent tech startup. While OpenAI’s payouts are extraordinary, details on individual grants remain unclear. Available data does not confirm whether specific founders or top employees received the largest stock options in 2021 compared to peers. OpenAI’s aggressive compensation strategy secures its position as a leader in AI talent, but the financial impact is significant, with rising losses and shareholder dilution. The company’s future spending on equity is set to grow even further in the coming years.
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