OpenAI Awards Substantial Bonuses to 1,000 Employees Amid AI Talent Race

OpenAI is offering substantial bonuses to around 1,000 employees, or one-third of its workforce, to retain top technical talent amid growing competitive pressure in the AI sector. The bonuses, ranging from hundreds of thousands to several million dollars, will be based on performance, seniority, and role, and can be received in cash or equity. The move comes as OpenAI prepares for a secondary share sale that would value the company at $500 billion.

OpenAI, the leading AI research and development company, has announced a significant initiative to retain its top technical talent amid growing competitive pressure in the AI sector. The company is offering substantial bonuses to approximately 1,000 employees, which makes up about one-third of its workforce. These bonuses, ranging from hundreds of thousands to several million dollars, will be based on each employee's performance, seniority, and role [3].

The bonuses can be received in either cash or equity, with the awards vesting quarterly over two years. This move comes as OpenAI prepares for a secondary share sale that would value the company at $500 billion—a significant increase from its previous $300 billion valuation [3]. The transaction would allow current and former employees to sell shares, unlocking value amid OpenAI’s rapid growth and strengthening retention.

The decision to offer these bonuses is a strategic response to the intense talent war in the AI sector. Companies like Meta and Microsoft are investing billions in AI infrastructure and offering high compensation packages to attract AI researchers. OpenAI's valuation is projected to rise significantly due to increased revenue and user growth, further justifying its investment in retaining talent [1].

The competition for AI talent has been particularly intense. OpenAI has seen several researchers leave for Meta Platforms, which has launched a hiring spree to support its new "superintelligence" division. In response, OpenAI Chief Research Officer Mark Chen circulated an internal memo promising aggressive countermeasures to address the talent drain [3]. OpenAI CEO Sam Altman has been outspoken about the competition, describing Meta’s tactics as "crazy" and citing signing bonus offers of up to $100 million [3].

Meta’s push into advanced AI has been backed by a $14.3 billion investment in Scale AI, a key data-labelling company used to train large models. Scale AI founder Alexandr Wang has been tapped to lead Meta’s AI initiative, which is reportedly overseen directly by CEO Mark Zuckerberg [3]. Despite the rising competition, OpenAI’s user growth remains strong. The company announced that ChatGPT now has 700 million weekly active users, up from 500 million in March, and processes more than three billion messages per day. The launch of GPT-5 is expected to further extend OpenAI’s technological lead [3].

The bonuses are part of OpenAI's broader strategy to maintain its leadership position in the AI sector. By retaining top talent and investing in its employees, OpenAI aims to stay ahead of the competition and continue driving innovation in artificial intelligence [3].

References:
[1] https://intellectia.ai/news/stock/zuck-poaching-effect-pushes-openai-to-announce-15-million-bonus-for-all-employeeseven-new-hires-says-tech-entrepreneur
[2] https://www.financialexpress.com/trending/who-is-andrew-tulloch-former-openai-employee-who-turned-down-zuckerbergs-1-bn-meta-offer/3935129/
[3] https://www.business-standard.com/companies/news/openai-bonuses-to-1000-employees-amid-ai-talent-war-meta-rivals-125080800363_1.html