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OpenAI is paying employees more than any major tech startup in history

wsj.com

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Re: OpenAI is paying employees more than any major tech startup in history

#11

Post by ur-whale »

OpenAI is exactly what happens when a company finds itself in such a far, far away blue ocean strategy that there are no more traditional "economic anchors" (to call it that) to reason with.

It usually ends in blood and tears, for both employees and investors.

BUT: the SOTA has been greatly advanced, which matters a great deal more than the destiny of a particular corporation or the social status of sam-i-am.

So, overall: good news.

Re: OpenAI is paying employees more than any major tech startup in history

#12

Post by Atotalnoob »

LunaSea wrote: post #10
Eridrus wrote: post #8

Earlier quoted context omitted.

I am sure you can make OpenAI stock liquid pretty easily.

Only if you're allowed to which is not always the case.

It’s allowed pretty easily.

They had had tender events (where you can sell your private stock super easily)

Re: OpenAI is paying employees more than any major tech startup in history

#14

Post by ls612 »

raw_anon_1111 wrote: post #6
no_wizard wrote: post #3

The article talks about averages, but what I want know is the median. The usual situation, and I have zero reason to believe OpenAI is different, is that stock options are top heavy leaning heavily toward executives. I want to know rank and file salaries as opposed to stock options

Illlquid “stock options” in a private company is not what I consider compensation.

OpenAI has regular tender offers for their employees, so while this advice is reasonable in general it is less true for this case.

Re: OpenAI is paying employees more than any major tech startup in history

#15

Post by mikeyouse »

LunaSea wrote: post #10
Eridrus wrote: post #8

Earlier quoted context omitted.

I am sure you can make OpenAI stock liquid pretty easily.

Only if you're allowed to which is not always the case.

They've changed the laws recently which makes it far easier - I believe you'd still need to be accredited but for most of HN, that's a low bar. For OpenAI specifically, they've allowed employees to participate in the funding rounds and they did a separate tender offer with Softbank to provide liquidity to early employees as well;

https://fortune.com/2024/12/17/hundreds-openai-employees-10-...

Re: OpenAI is paying employees more than any major tech startup in history

#16

Post by tonfa »

causal wrote: post #13

Browsing OpenAI's careers page, I'm seeing at most $275k for most positions, so I'm assuming the median is much lower than an average being pulled up by a few rockstar positions.

You also need to take into account equity, since it went up 250% in a year it can be a large amount of someone's compensation.

Re: OpenAI is paying employees more than any major tech startup in history

#19

Post by soared »

ceejayoz wrote: post #7
raw_anon_1111 wrote: post #6

Earlier quoted context omitted.

Illlquid “stock options” in a private company is not what I consider compensation.

This is the general rule, but not for ones the size of OpenAI. There’s always a secondary market for prominent enough companies.

Dont all private companies require approval for secondary sales, which I assume are not ever approved?

Re: OpenAI is paying employees more than any major tech startup in history

#20

Post by belter »

raw_anon_1111 wrote: post #6
no_wizard wrote: post #3

The article talks about averages, but what I want know is the median. The usual situation, and I have zero reason to believe OpenAI is different, is that stock options are top heavy leaning heavily toward executives. I want to know rank and file salaries as opposed to stock options

Illlquid “stock options” in a private company is not what I consider compensation.

Dont worry...there is always an acquisition by Meta, on the horizon for any company with nowhere to go.
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