Meta is aggressively competing with OpenAI by poaching top AI talent with lucrative packages, driving its spending to record highs and pushing its stock to all-time levels. In response, OpenAI is adjusting its compensation strategies to retain key researchers amid intense internal pressures and a high-stakes race to advance artificial general intelligence.
Meta’s shares have reached an all-time high as the company aggressively ramps up its spending on AI talent, intensifying the competition with OpenAI. Despite efforts by OpenAI’s CEO Sam Altman to retain top researchers, Meta has successfully poached at least eight leading AI experts from OpenAI. These hires reportedly come with lucrative compensation packages, some valued at around $100 million each, signaling Meta’s commitment to securing the best minds to drive its AI ambitions forward.
This surge in talent acquisition is part of a broader strategy where Meta is significantly increasing its overall expenses, with projections for 2025 reaching between $114 billion and $119 billion. This level of spending surpasses even the peak of Meta’s previous metaverse investment phase, which saw about $70 billion in expenses in 2021. Unlike the metaverse push, which eventually led to investor skepticism and a sharp decline in share value, Meta’s leadership believes that their current focus on AI is a more sustainable and attractive investment for the future.
CEO Mark Zuckerberg is banking on the efficiency improvements made in other parts of Meta’s business to support this new wave of heavy spending. The market has responded positively so far, with Meta’s stock hitting record highs. This aggressive talent acquisition and investment strategy is seen as a direct challenge to OpenAI, despite public downplaying of Meta’s efforts by OpenAI executives who have referred to the competition as a “side quest.”
Inside OpenAI, however, the reaction is far more serious. A leaked memo from OpenAI’s chief research officer likened Meta’s talent raids to a break-in, emphasizing the threat posed by losing key researchers. In response, OpenAI is reportedly recalibrating its compensation packages to better reward and retain top talent, signaling a shift in strategy to counter Meta’s aggressive recruitment tactics.
Additionally, OpenAI, known for its intense work culture with 80-hour workweeks, has mostly shut down operations this week for a scheduled break, highlighting the high-pressure environment within the company. This pause comes at a critical time as the AI talent war heats up, underscoring the intense competition and high stakes involved in the race to develop advanced artificial general intelligence (AGI).