OpenAI, offering stock rewards from the first day of employment... The competition for AI talent intensifies

With the rapid development of artificial intelligence(AI) technology, competition among major global tech companies for related talent is becoming increasingly fierce. Taking OpenAI, the developer of ChatGPT, as an example, the company has introduced a policy of providing equity rewards upon onboarding to formally address the talent race.

OpenAI has previously implemented the industry-standard “equity grant cliff” system, whereby employees must work for a certain period before receiving equity. This structure requires employees to work at least 12 months, or at least 6 months (half of the minimum threshold), before they can receive equity rewards. However, it is reported that by December 2025, under the leadership of Fiji Simo, CEO of the application division, the company has fully abolished this system. The company explains that the new policy aims to enable employees to pursue innovative challenges without bearing the burden of uncertain future prospects.

This change is set against the backdrop of intense AI talent competition. Major U.S. tech companies like Meta (formerly Facebook) and Google are attracting top AI researchers with compensation packages worth up to several trillion Korean won annually. Some companies have even acquiesced to outright acquisitions of highly skilled startups or have poached talent from competitors with substantial pay.

On the other hand, OpenAI, which has yet to achieve significant operational profits, continues to face financial pressures from hefty fixed expenses such as data center investments. Therefore, the company has opted for a strategy of replacing immediate cash bonuses with equity that has long-term potential for growth. According to The Wall Street Journal, OpenAI plans to allocate about $6 billion, half of its expected revenue of approximately $12 billion this year, for equity rewards.

This trend is also similar in xAI, another AI company led by Elon Musk. It is reported that after relaxing its existing employment requirements, acceptance rates for recruitment invitations have increased. This indicates that, while AI technology is replacing some positions and prompting organizational adjustments for junior developers and other staff, top-tier AI talent is increasingly being offered rewards worth hundreds of millions of Korean won, leading to a polarization in the job market.

It is expected that this trend will continue for some time in the future. Especially as global companies compete for talent in emerging fields like generative AI, the intensifying talent war is likely to bring about significant changes to traditional employment culture and compensation systems.