OpenAI is reinventing tech compensation with flat salaries, no bonuses and no negotiation as it banks on untapped potential
Zuhayeer Musa, the founder of the popular tech pay database and advisory Levels.fyi, whichOpenAI's pay, said there has been only one other company with a similar compensation structure to OpenAI: Argo AI, an autonomous driving company that shut down last year.
OpenAI's compensation is a simple salary-plus-equity model. Most employees are paid a flat base salary of about $300,000 alongside a yearly grant of around $500,000 in PPUs, or profit participation units, a form of equity compensation. And that's it. Musa noted there is some differentiation in pay for workers at OpenAI depending on experience, up or down several thousand dollars in salary or PPU grants, typically in increments of $25,000. Yet, most roles come close to the $300,000 salary and $500,000 grant split. Over the course of four years, the vesting period for the PPU grants, most OpenAI workers can expect to take home at least $2 million in equity pay alone.
"People have definitely been worried about the risk," Musa said. The potential upside, however, is a big pull. Although the price an employee can fetch for their grant is capped at 10x the granted value, that still means today's typical OpenAI worker could make up to $20 million on their PPUs. The company's valuation most recently jumped from $20 billion to $29 billion, and its valuation has.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Google AI Boss Says New System Will Be More Powerful Than OpenAIGoogle's forthcoming new AI combines LLM technology with the strengths of the groundbreaking AlphaGo, says Google DeepMind CEO.
Leer más »
ChatGPT-maker OpenAI hires European top lobbyistSandro Gianella, the company's new head of European policy and partnerships, will build up a team and report to Anna Makanju, who’s leading the global policy teams.
Leer más »
ChatGPT maker OpenAI faces class action over how it used people’s dataA California law firm is suing OpenAI for violating the privacy and property rights of countless people when it used their internet data to train its AI tech.
Leer más »
OpenAI reveals location of its first international outpost | Digital TrendsOpenAI has had only a San Francisco office since its founding in 2015, but following the huge success of ChatGPT, it's now ready for an international expansion.
Leer más »
ChatGPT maker OpenAI hit with class-action lawsuit over alleged data theftThe rise of AI Tech has also nudged governments around the world to take notice and the likes of the United States and Europe have already proposed certain legislation around the nascent industry.
Leer más »
James Crown, billionaire JPMorgan board member, died in racing crashJames Crown, a billionaire JPMorgan board member who belonged to one of the US' richest families, died in a racing crash on his 70th birthday
Leer más »