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$900k Median Package for Engineers at OpenAI

levels.fyi

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Re: $900k Median Package for Engineers at OpenAI

#31

Post by almost_usual »

wmf wrote: post #20
boeingUH60 wrote: post #4

> The tax filings also reveal previously unreported details about one of the most valuable and well-known technology ventures operating today, including the level of investment by Reid Hoffman, free Teslas for early OpenAI engineers and the skyrocketing computing bill that may have prompted it to take a $1 billion investment from Microsoft. https://techcrunch.com/2023/05/17/elon-musk-used-to-say-he-p...

A ~$100K signing bonus sounds kind of small for someone making $900K per year.

Because the PPU equity isn’t worth anything until they’re profitable.

Re: $900k Median Package for Engineers at OpenAI

#33

Post by asimpletune »

sidcool wrote: post #17

Isn't it for member of technical staff? It's a high level position.

MTS is usually what a recent college graduate gets promoted to, once they've passed their sort of 1 year trial period. You can +/- that timeline about a year, but more or less that's what it is, at least from what I've seen in SF.

Re: $900k Median Package for Engineers at OpenAI

#34

Post by ed25519FUUU »

jedberg wrote: post #28

Based on what I've seen/heard, they seem to follow a similar comp philosophy to Netflix -- pay top of market to get the best people. But it's also important to note that only $300K of that is in cash. The other $600K is in profit participation, which could take years (maybe even a decade!) to be realized. It could also be worth $6M a year when it's realized. But ultimately it's an investment of your time. Or to think…

I guess the first part of that is like netflix, but as you know the second part is not since netflix is 100% cash unless you want to participate some portion of that in the employee stock plan.

Re: $900k Median Package for Engineers at OpenAI

#35

Post by ldjkfkdsjnv »

rvz wrote: post #18
ldjkfkdsjnv wrote: post #6

Other companies nickel and diming engineers think they are somehow getting something for free. All the highest performing companies in the world pay insane amounts to their programmers

Only when overfunded with VC money. At that point, they are not hiring you, me or anyone who directly applies themselves via the job form. They are hiring their friends from elite circles.

The unfortunate reality is that those elite circles usually do have the best among them. And having worked in FAANGs, there is some aspect of meritocracy, the code doesnt lie

Re: $900k Median Package for Engineers at OpenAI

#37

Post by wmf »

almost_usual wrote: post #9
zuhayeer wrote: post #3

Instead of traditional equity, OpenAI issues PPUs which represent a share of the profits. More details on how it works here: https://www.levels.fyi/blog/openai-compensation.html

> It’s important to reiterate that the PPUs inherently are not redeemable for value if OpenAI does not turn a profit. That said, there are investors that have been willing to pay for these PPUs and that’s where the value being told to candidates is derived from. > In conversations with recruiters we’ve heard from some candidates that OpenAI is communicating that they don’t expect to turn a profit until they reach the…

If OpenAI has a monopoly on AGI within the current neoliberal capitalist framework they'll make trillions before the system collapses. It's like Aramco but bigger.

Re: $900k Median Package for Engineers at OpenAI

#38

Post by [deleted] »

wmf wrote: post #29
almost_usual wrote: post #10

Earlier quoted context omitted.

Not stock PPUs which are only worth anything if they turn a profit and according to OpenAI that isn’t happening until AGI. https://www.levels.fyi/blog/openai-compensation.html

OpenAI PPUs are no different than stock in a growing-but-unprofitable company like old Amazon. You don't have to wait for dividends; you can sell your PPUs to speculators who expect returns in the future.

[deleted]

Re: $900k Median Package for Engineers at OpenAI

#39

Post by a_t48 »

Their job postings are (were?) certainly...a thing. I can't find the page (maybe I hallucinated it), but I remember reading a line that was essentially "we only want famous ML/AI researchers and engineers, others need not apply". When I read it a few months ago I said "yeah, that makes sense, everyone wants to work for you right now" and closed the page. It looks like they are casting a wider net now, though.

Re: $900k Median Package for Engineers at OpenAI

#40

Post by jedberg »

ed25519FUUU wrote: post #34
jedberg wrote: post #28

Based on what I've seen/heard, they seem to follow a similar comp philosophy to Netflix -- pay top of market to get the best people. But it's also important to note that only $300K of that is in cash. The other $600K is in profit participation, which could take years (maybe even a decade!) to be realized. It could also be worth $6M a year when it's realized. But ultimately it's an investment of your time. Or to think…

I guess the first part of that is like netflix, but as you know the second part is not since netflix is 100% cash unless you want to participate some portion of that in the employee stock plan.

Yes, the first part of the philosophy, pay top of market. Not the second part, where they employee gets to choose their level of exposure to investment risk. But Netflix is a public company, and OpenAI is not.
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