> compensation packages that truly gifted AI researchers can make now
I guess it depends on your definition of "truly gifted" but, working in this space, I've found that there is very little correlation between comp and quality of AI research. There's absolutely some brilliant people working for big names and making serious money, there's also plenty of really talented people working for smaller startups doing incredible work but getting paid less, academics making very little, and even the occasional "hobbyist" making nothing and churning out great work while hiding behind an anime girl avatar.
OpenAI clearly has some talented people, but there's also a bunch of the typical "TC optimization" crowd in there these days. The fact that so many were willing to resign with sama if necessary appears largely because they were more concerned with losing their nice compensation packages than any of their obsession with doing top tier research.
Two people I knew recently left Google to join OpenAI. They were solid L5 engineers on the verge of being promoted to L6, and their TC is now $900k. And they are not even doing AI research, just general backend infra. You don't need to be gifted, just good. And of course I can't really fault them for joining a company for the purpose of optimizing TC.
As a community we should stop throwing numbers around like this when more than half of this number is speculative. You shouldn't be able to count it as "total compensation" unless you are compensated.
Word in town is [1] openai "plans" to let employees sell "some" equity through a "tender process" which ex-employees are excluded from; and also that openai can "claw back" vested equity, and has used the threat of doing so in the past to pressure people into signing sketchy legal documents.
I would definitely discount OpenAI equity compared to even other private AI labs (i.e. Anthropic) given the shenanigans, but they have in fact held 3 tender offers and former employees were not, as far as we know, excluded (though they may have been limited to selling $2m worth of equity, rather than $10m).
> Word on town is OpenAI folks heavily selling shares in secondaries in 100s of millions
OpenAI heavily restricts the selling of its "shares," which tends to come with management picking the winners and losers among its ESOs. Heavily, heavily discount an asset you cannot liquidate without someone's position, particularly if that person is your employer.
When I looked into it and talked to some hiring managers, the big names were offering cash comp similar to total comp for big tech, with stock (sometimes complicated arrangements that were not options or RSUs) on top of that. I’m talking $400k cash for a senior engineer with equity on top.
Because op’s usage of base implies base + stock. including a place where base = total comp is really misleading and is just being unnecessarily pedantic about terminology.
OP is correct that a base cash of 400k is truly rare if you’re talking about typical total comp packages where 50% is base and 50% is stock.
I don’t know what point you’re trying to make other than being super pedantic. This was a discussion about how OpenAI’s base of 400k is unique within the context of a TCO in the 800-900k range. It is. That quantfi and Netflix offer similar base because that’s also their TCO is a silly argument to make.
> This was a discussion about how OpenAI’s base of 400k is unique within the context of a TCO in the 800-900k range.
That's not how I interpret the conversation.
I see a claim that 900k is a BS number, a counterargument that many big AI companies will give you 400k of that in cash so the offers are in fact very hot, then a claim that only finance offers 400k cash, and a claim that netflix offers 400k cash.
I don't see anything that limits these comparisons to companies with specific TCOs.
Even if the use of the word "base" is intended to imply that there's some stock, it doesn't imply any particular amount of stock. But my reading is that the word "base" is there to say that stock can be added on top.
You're the one being pedantic when you insist that 400k cash is not a valid example of 400k cash base.
Notice how the person being replied to looked at the Netflix example and said "Okay that's true". They know what they meant a lot better than you do.
ok so the conversation starts out with 900k TCO with 400k in cash, a claim that that’s BS and then morphs into a discussion about a TCO of 400k all cash being an example of equivalent compensation to OpenAI packages?
Nobody said it was equivalent. The subdiscussion was about whether you can even get that much cash anywhere else, once TCO got pulled apart into cash and stock to be compared in more detail.
Again, the person that made the original claim about where you can get "400k cash base" accepted the Netflix example. Are you saying they're wrong about what they meant?
It's amazing to me how many people are willing to just say the first thing that comes to their head while knowing they can be fact-checked in a heartbeat.
> Note at offer time candidates do not know how many PPUs they will be receiving or how many exist in total. This is important because it’s not clear to candidates if they are receiving 1% or 0.001% of profits for instance. Even when giving options, some startups are often unclear or simply do not share the total number of outstanding shares. That said, this is generally considered bad practice and unfavorable for employees. Additionally, tender offers are not guaranteed to happen and the cadence may also not be known.
> PPUs also are restricted by a 2-year lock, meaning that if there’s a liquidation event, a new hire can’t sell their units within their first 2 years. Another key difference is that the growth is currently capped at 10x. Similar to their overall company structure, the PPUs are capped at a growth of 10 times the original value. So in the offer example above, the candidate received $2M worth of PPUs, which means that their capped amount they could sell them for would be $20M
> The most recent liquidation event we’re aware of happened during a tender offer earlier this year. It was during this event that some early employees were able to sell their profit participation units. It’s difficult to know how often these events happen and who is allowed to sell, though, as it’s on company discretion.
Definitely true of even normal software engineering; my experience has been the opposite of expectations, that TC-creep has infected the industry to an irreparable degree and the most talented people I've ever worked around or with are in boring, medium-sized enterprises in the midwest US or australia, you'll probably never hear of them, and every big tech company would absolutely love to hire them but just can't figure out the interview process to weed them apart from the TC grifters.
TC is actually totally uncorrelated with the quality of talent you can hire, beyond some low number that pretty much any funded startup could pay. Businesses hate to hear this, because money is easy to turn the dial up on; but most have no idea how to turn the dial up on what really matters to high talent individuals. Fortunately, I doubt Ilya will have any problem with that.
I have also worked in multiple different sized companies, including FAANG, and multiple countries. My assessment is that FAANGs tend to select for generally intelligent people who can learn quickly and adapt to new situations easily but who nowadays tend to be passionless and indifferent to anything but money and prestige. Personally I think passion is the differentiator here, rather than talent, when it comes to doing a good job. Passion means caring about your work and its impact beyond what it means for your own career advancement. It means caring about building the best possible products where “best” is defined as delivering the most value for your users rather than the most value for the company. The question is whether big tech is unable to select for passion or whether there are simply not enough passionate people to hire when operating at FAANG scale. Most likely it’s the latter.
So I guess I agree with both you and the parent comment somewhat in that in general the bar is higher at FAANGs but at the same time I have multiple former colleagues from smaller companies who I consider to be excellent, passionate engineers but who cannot be lured to big tech by any amount of money or prestige (I’ve tried). While many passionless “arbitrary metric optimizers” happily join FAANGs and do whatever needs to be done to climb the ladder without a second thought.
I sort of agree and disagree. I wouldn't agree with the idea that most FAANG engineers are not passionate by nature about their work.
What I would say is that the bureaucracy and bullshit one has to deal with makes it hard to maintain that passion and that many end up as TC optimizers in the sense that they stay instead of working someplace better for less TC.
That said, I am not sure how many would make different choices. Many who join a FAANG company don't have the slightest inkling of what it will be like and once they realize that they are tiny cog in a giant machine it's hard to leave the TC and perks behind.
I guess it depends on your definition of "truly gifted" but, working in this space, I've found that there is very little correlation between comp and quality of AI research. There's absolutely some brilliant people working for big names and making serious money, there's also plenty of really talented people working for smaller startups doing incredible work but getting paid less, academics making very little, and even the occasional "hobbyist" making nothing and churning out great work while hiding behind an anime girl avatar.
OpenAI clearly has some talented people, but there's also a bunch of the typical "TC optimization" crowd in there these days. The fact that so many were willing to resign with sama if necessary appears largely because they were more concerned with losing their nice compensation packages than any of their obsession with doing top tier research.