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

wsj.com

21–30 of 81 posts

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

#22

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

In general, I wish the media would stop using just the average when the distribution is not normal.

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

#23
post #4

"OpenAI’s compensation as a percentage of revenue was set to reach 46% in 2025" At least the revenue is large enough to cover the payroll. That's a good milestone. Not really a fan of Altman, but I don't mind the competition he brings to the landscape.

Does that include stock? I bet it’s just cash.

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

#24
post #19
post #7

Earlier quoted context omitted.

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?

Typically. I’d be shocked if OpenAI let employees sell their options like this without requiring approval

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

#25
post #14

Earlier quoted context omitted.

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.

Less true isn’t the same as not true. Simply put we don’t know because it’s not what they are disclosing

This article feels more like paid publicity than it does journalism

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

#26
post #16
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.

Until it’s really liquid it’s still fiction. The salary and other cash compensation is all that matters until you can actually sell the options

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

#28
I'm not surprised they have to pay higher, since no amount of money could convince me to work towards human irrelevance, or BigAdTech.

When I see this technology improve and free the lives of those whose salary is akin to slavery, then I might reconsider.

Context: I've been reading about the Mondragon Corporation, and it seems a much better model than this maximum extraction economy we are building. I'll submit a story for it, although I discovered it through a HN book recommendation (Kim Stanley Robinson).

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

#29
post #16

Earlier quoted context omitted.

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.

Until it’s really liquid it’s still fiction. The salary and other cash compensation is all that matters until you can actually sell the options

Aren't their secondary markets for this? My wife gets offers constantly for her options even though they're not public yet and the offers are higher then what she was awarded them at. Maybe it's scams? we never took any of them up on it.

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

#30

GPT-5.2 has radically changed my outlook on OpenAI. Head and shoulders above others. The excellence is there.

I'm also a happy customer.

But, one thing has been consistent for the past 3 years: After every release from all the serious competitors, the hype can go either way.

As far as the hype cycles go, OpenAI is oscillating between "Best model ever" and "What a letdown, it's over" at least twice a year.

The competition is fierce, and a never-ending marathon of all the players getting ahead just a bit. No clear long-term winner.

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