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Just like NBA stars, US AI experts are now receiving $250 million pay packages

Just like NBA stars, US AI experts are now receiving $250 million pay packages

Time of Indiaa day ago
US AI researchers are securing $250 million+ deals as tech giants battle for top talent. (AI Image)
In the latest development in the US artificial intelligence (AI) job market, top AI researchers are reportedly receiving compensation packages exceeding $250 million, matching or even surpassing earnings of NBA superstars.
As reported by The New York Times, technology firms including Meta, Google, OpenAI, and Microsoft are engaging in aggressive recruitment strategies, likened to free agency negotiations in professional sports.
The AI talent war has intensified as companies compete to develop "superintelligence" — advanced AI systems capable of outperforming the human brain. The scarcity of experienced researchers has led to highly competitive offers and personal interventions by tech executives to secure top talent.
High-value offers and personal outreach
Meta CEO Mark Zuckerberg reportedly offered 24-year-old AI researcher Matt Deitke a compensation package worth approximately $250 million over four years. According to The New York Times, the offer included as much as $100 million in the first year alone. Mr Deitke, who co-founded the startup Vercept, had initially declined an earlier offer of around $125 million in stock and cash.
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Following further negotiation and a personal meeting with Mr Zuckerberg, Mr Deitke accepted the revised offer.
Recruitment efforts have become highly personalised. Zuckerberg has been directly messaging potential recruits, often following up with larger offers. As quoted by The New York Times, some Meta employees likened this strategy to the approach of sports franchise owners. The publication also reported that companies see these high compensation packages as justifiable, with the potential to significantly increase revenue through AI advancements.
Recruitment tactics reflect professional sports culture
The current AI hiring environment is marked by a level of intensity resembling that of major sports leagues. Companies have been poaching talent from each other, and social media has mirrored this dynamic with graphics and posts styled after sports trade announcements. One such post, made by the tech-focused online streaming platform TBPN, read: 'BREAKING: Microsoft has poached over 20 staff members from DeepMind over the last six months,' as cited by The New York Times.
Many young AI researchers have reportedly formed private online groups to discuss offers, compare compensation packages, and advise each other on negotiation strategies. These discussions have taken place on platforms such as Slack and Discord, according to the report. The growing influence of these informal networks has shaped how researchers approach career decisions.
Computing resources and recruitment networks
In addition to financial compensation, companies like Meta are also offering vast computing resources.
As per The New York Times, some recruits have been promised access to 30,000 graphical processing units (GPUs) — a critical asset for developing and training large AI models.
Recruitment efforts are also being guided by internal documents, including one referred to as 'the List.' This list, as reported by The New York Times, contains names of top researchers with qualifications such as a Ph.D. in an AI-related field, experience at leading research labs, and a record of contributing to significant AI breakthroughs.
Market shifts and internal challenges
The demand for elite AI talent has also affected internal structures at companies like OpenAI. According to The New York Times, OpenAI's Chief Research Officer Mark Chen acknowledged in a staff meeting that the company has been countering offers from competitors. However, he noted that OpenAI had not matched Meta's financial proposals, stating, 'I personally think that in order to work here, you have to believe in the upside of OpenAI,' as quoted in the report.
This rapid escalation in compensation has led to a redefinition of how value is assigned to AI expertise in the US, with new recruits often attempting to bring former colleagues into their teams. The New York Times also noted that researchers frequently try to recruit friends after joining a new lab, strengthening internal cohesion and collaboration.
Background on Matt Deitke and Vercept
Mr Deitke, who left a Ph.D.
programme at the University of Washington, previously worked at the Allen Institute for Artificial Intelligence, where he contributed to the development of Molmo — an AI chatbot capable of handling images, sounds, and text. In November, he and several colleagues founded Vercept, a startup building autonomous AI agents. Vercept has reportedly raised $16.5 million in funding, including investment from former Google CEO Eric Schmidt.
Following Mr Deitke's decision to accept Meta's offer, Vercept's CEO posted on social media: 'We look forward to joining Matt on his private island next year,' as cited by The New York Times.
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Anthropic CEO throws shade at Mark Zuckerberg's billion-dollar AI talent hunt with dartboard dig: ‘You can't buy purpose with a paycheck'
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AI researchers are negotiating $250 million pay packages, just like NBA stars
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Academy Empower your mind, elevate your skills Over the summer, Matt Deitke got a phone call from Mark Zuckerberg Meta 's chief wanted Deitke, a 24-year-old artificial intelligence researcher who had recently helped found a startup, to join Meta's research effort dedicated to "superintelligence," a technology that could hypothetically exceed the human brain. The company promised him around $125 million in stock and cash over four years if he came offer was not enough to lure Deitke, who wanted to stick with his startup, two people with knowledge of the talks said. He turned Zuckerberg Zuckerberg personally met with Deitke. Then Meta returned with a revised offer of around $250 million over four years, with potentially up to $100 million of that to be paid in the first year, the people said. The compensation jump was so startling that Deitke asked his peers what to do. After many discussions, some of them urged him to take the deal -- which he Valley's AI talent wars have become so frenzied -- and so outlandish -- that they increasingly resemble the stratospheric market for NBA AI researchers are being recruited as if they are Steph Curry or LeBron James, with nine-figure compensation packages structured to be paid out over several years. To navigate the froth, many of the 20-somethings have turned to unofficial agents and entourages to strategize. And they are playing hardball with the companies to get top dollar, much as basketball players shop for the best deals from difference is that unlike NBA teams, deep-pocketed AI companies like Meta, OpenAI and Google have no salary caps. (Curry's most recent four-year contract with the Golden State Warriors was $35 million less than Deitke's deal with Meta.) 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Superintelligent AI would not just improve the company's business, he said, but would also become a personal tool that "has the potential to begin an exciting new era of individual empowerment."A Meta spokesperson declined to comment. Deitke did not respond to a request for job market for AI researchers has long had parallels to professional sports. In 2012, after three academics at the University at Toronto published a research paper describing a seminal AI system that could recognize objects like flowers and cars, they auctioned themselves off to the highest corporate bidder -- Google -- for $44 kicked off a race for talent across the tech industry. 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But he added that OpenAI had not matched Meta's offers because "I personally think that in order to work here, you have to believe in the upside of OpenAI."OpenAI declined to comment. (The Times has sued OpenAI and Microsoft, claiming copyright infringement in relation to news content related to AI systems. The two companies have denied the claims.)Not all of Meta's overtures have succeeded. The company has been rebuffed by some researchers, two people said, partly because Zuckerberg's vision for artificial intelligence was unclear compared to those at other the frenzy has allowed even little-known researchers like Deitke to chart their own who recently dropped out of a computer science Ph.D. program at the University of Washington , had moonlighted at a Seattle AI lab called the Allen Institute for Artificial Intelligence. 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AI talent war: Amid reports of Meta's $200 million offer, what is Zuckerberg trying to ‘buy but can't', according to Anthropic's CEO?
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