Public salary data reveal how much xAI pays some workers compared to OpenAI
Dec 12, 2024 - businessinsider.com
Elon Musk has filed a lawsuit against OpenAI, accusing the company of anticompetitive practices by offering excessively high salaries to attract top talent, thereby "starving competitors" like his own company, xAI. An analysis of salary data from specialty visa applications revealed that both xAI and OpenAI pay significantly above the industry standard, with OpenAI offering even higher premiums for some roles. xAI, which is much smaller than OpenAI, reported paying one worker nearly double the prevailing wage, while OpenAI paid one employee more than three times the standard rate. This legal battle highlights the intense competition for AI talent between the two companies, which Musk and Sam Altman co-founded in 2015 before Musk left the board in 2018.
The lawsuit is part of an ongoing feud between Musk and Altman, with Musk alleging he was "deceived" into cofounding OpenAI. Since launching xAI, Musk has accused OpenAI of aggressively recruiting Tesla employees and has hired at least nine former OpenAI staff members. OpenAI's attorneys have dismissed Musk's lawsuit as an attempt to gain a competitive edge. The legal dispute underscores the high stakes in the AI industry, where attracting top talent is crucial, and both companies are willing to pay a premium to secure the best employees.
Key takeaways:
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Elon Musk has filed a lawsuit against OpenAI, alleging that the company overpays its employees as part of anticompetitive practices.
Both xAI and OpenAI offer salaries significantly above the industry standard, with OpenAI paying some employees over three times the prevailing wage.
xAI is much smaller than OpenAI, with about 100 employees compared to OpenAI's 3,000, but both companies are engaged in a competitive battle for AI talent.
Musk's lawsuit is part of an ongoing feud with OpenAI and its CEO, Sam Altman, with Musk accusing OpenAI of aggressive recruitment tactics.
