Inside OpenAI's $1.5 million compensation packages

A Wall Street Journal report reveals that OpenAI is offering its employees an average of $1.5 million in stock-based compensation, a figure that is unprecedented in Silicon Valley history. This compensation level, which is multiple times higher than what other tech giants offered before their IPOs, highlights the intense competition for top AI talent. The situation is described as a 'prisoner's dilemma', where companies are forced to escalate costs to retain and attract talent, even though collectively capping compensation would benefit all. As a result, OpenAI has had to adjust its internal equity rules, such as removing a waiting period for stock awards to vest, to stay competitive in the job market.