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Elon Musk's Feud With Sam Altman Has Been Very Good for Engineers

Dec 12, 2024 - gizmodo.com
Elon Musk and Sam Altman are engaged in a rivalry over generative AI, with both of their companies, xAI and OpenAI, offering high salaries to attract top talent. A report from _Business Insider_ reveals that xAI and OpenAI pay their employees 37% and 87% above the industry’s prevailing wage, respectively. xAI, with about 100 employees, offers salaries between $250,000 and $500,000, while OpenAI, with thousands of employees, has a salary range from $145,000 to $530,000. This competition is fueled by the broader AI hype in the tech industry and Musk's desire to compete with OpenAI, a company he helped start but left due to differing views.

Musk has invested heavily in xAI and its Grok chatbot, aiming to surpass OpenAI. He is also suing OpenAI to prevent it from becoming a for-profit entity, arguing that it contradicts the original non-profit mission focused on AI safety. However, court emails suggest Musk previously supported the idea of OpenAI becoming for-profit to ease fundraising. The lawsuit appears to be an attempt to slow OpenAI's progress, with Musk criticizing its high salaries as anti-competitive. This situation highlights the tension between free market principles and competitive business strategies in the tech industry.

Key takeaways:

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  • Elon Musk's xAI and Sam Altman's OpenAI are offering significantly higher salaries than the industry average to attract top talent, with xAI paying 37% and OpenAI 87% above the prevailing wage.
  • xAI has about 100 employees, with salaries ranging from $250,000 to $500,000, while OpenAI, with thousands of employees, offers salaries between $145,000 and $530,000.
  • Elon Musk is heavily investing in xAI and its Grok chatbot to compete with OpenAI, having raised over $50 billion for his ventures.
  • Musk is suing OpenAI to prevent it from becoming a for-profit company, despite previously suggesting the idea, claiming that high salaries are being used to stifle competition.
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