Categories
Selected Articles

The AI talent wars are ricocheting across startups. Here’s how they’re competing with Big Tech.

A closeup of a person's hands holding a handful of one hundred dollar bills.
Salaries and equity are climbing, as startups tout the impact of working somewhere smaller.

  • Startups are scrapping with Big Tech over AI talent.
  • Salaries and equity are peaking, as startups emphasize ownership and impact, recruiters said.
  • The AI boom is fueling a newfound intensity in startup work culture.

Tech giants aren’t the only ones fighting over top AI talent.

From multibillion-dollar acquihires to poaching packages reportedly worth tens of millions of dollars, the talent wars are having a “bit of a waterfall-like effect on comp” across early-stage startups, said Cristina Cordova, a former VC and the COO of issue tracking company Linear.

Salary and equity packages are climbing, and startups are touting the unique impact and ownership of working somewhere smaller, recruiters told Business Insider.

A head of AI at a Series A company — with an applied background and time spent in a top research lab — can command between $300,000 and $400,000 in base pay, said Shawn Thorne, managing director at executive search firm True Search.

That’s without any previous management experience. Before the AI boom, the salary for a vice president of engineering may have been closer to $200,000 to $250,000, he said.

“There are two sets of rules,” Thorne said. “The price that you need to pay for all talent, and then there’s the price you need to pay for AI talent.”

It’s not just base pay that’s exploding. Equity is “the big factor” because startups compete with the “opportunity cost” of a top researcher or applied engineer launching a startup of their own, he said.

Equity packages have climbed to between 2% to 5% for top engineers, Thorne said — compared to what would’ve been a fraction of a percent for an early-stage, non-managerial employee in the past.

Other bargaining chips include letting AI researchers or engineers come in with a cofounder title, compute access, and time for research outside work, Thorne said.

“We’ve seen top candidates win with remote flexibility, front-loaded equity, big sign-on bonuses, tighter cycles on compensation refreshes, and friends on the team,” said Natan Fisher, an investor and the cofounder of recruiting service SingleSprout. “It’s not just the offer. It’s how fast and personally the process goes.”

The fight for AI talent has become unprecedented. In June, Meta spent $14.3 billion on a Scale AI investment and what was seen as an acquihire of Scale AI’s CEO, Alexandr Wang, while Google snapped up Windsurf’s top talent this month for $2.4 billion.

OpenAI CEO Sam Altman previously said Meta had attempted to poach talent with $100 million signing bonuses, which Meta’s CTO Andrew Bosworth said OpenAI had countered.

Startups can offer ownership and impact

Frenetic job-hopping has become the new normal in AI, Cordova said, contributing to “a mercenary mindset” and a higher bar for employee retention.

Startups have an edge. They can offer the opportunity to be part of something transformative and the potential financial windfall that comes with that. They can also offer a sense of freedom, as opposed to being a cog in a machine with a limited scope. (Big Tech CEOs like Meta CEO Mark Zuckerberg are well aware of these dynamics, similarly offering fewer reports and more AI compute power to woo top candidates.)

While Fisher said he doesn’t know any early-stage startups that can compete with $10 million compensation packages, “they can win by pitching sharper problems, faster cycles, and giving top AI engineers the ability to own product, with strong upside.”

The larger talent wars aren’t affecting all startups, including those building off existing AI models. Shie Gabbai, the COO of AI travel planning company Layla, said that while nearly all of the company’s funding has gone to hiring engineers, salaries have not been affected.

Gold star AI candidates

AI startups face a widening gap between gold star researchers — the kind selling their startups for billions — and rank-and-file employees who might not have the same pedigree.

The latter may fetch salaries more in line with what’s typical in Silicon Valley, said Mark Bai, a managing director at True Search.

As AI increasingly replaces early engineering jobs, tech companies disperse salaries among a smaller number of people.

Gold star candidates are usually PhDs from a well-known computer science program focused on machine learning, such as Stanford, Berkeley, MIT, Waterloo, or Carnegie Mellon, and who, five years later, have landed on a top AI research team at a major company, said Thorne and Bai.

“Pretty much every client that Mark and I talk to would like to poach someone out of OpenAI or FAIR at Meta,” Thorne said, referring to Meta’s Fundamental AI Research group.

Fisher added that xAI is often flagged. Many top researchers also know one another, a major boon when assembling a team.

“More than specific skills, companies want people who live and breathe AI,” Fisher said.

He said that this includes people who ship side projects, stay close to model updates, write code, speak at conferences, have a good social media presence, and write academic papers.

The AI wars fuel a newfound work intensity

The talent wars are a key symptom of “a level of urgency in tech that’s been missing for years,” Cordova said.

With every new AI model launched, a new wave of companies is born and dies, Bai said. The intensity is manifesting in more rigid return-to-office expectations and “founder mode” taking hold.

“They’re bringing in some of this 996 culture,” Bai said, referring to a widespread tech work culture in China of working 9 a.m. to 9 p.m. six days a week.

Bai added that some companies work seven days a week. “There are literally offices with bunk beds.”

While a high-pressure atmosphere is synonymous with startup culture, Thorne said the pendulum has swung back in a major way after the COVID pandemic, and founders have become more forward about their demands.

“This is by far the most intensity that I’ve ever experienced from clients over the last decade,” Bai said.

Read the original article on Business Insider
Categories
Selected Articles

Gen Z Sibling Looks in Little Sister’s Bag, Left ‘Worried’ by What They Find

Social media users were divided over the Reddit post, with one saying the sister “has complete lack of effort or curiosity to learn.”
Categories
Selected Articles

Russian attacks in Ukraine kill a child and wound 24 before planned direct peace talks

Russian attacks in Ukraine kill a child and wound 24 before planned direct peace talks [deltaMinutes] mins ago Now
Categories
Selected Articles

Israel Warns Iran in New IDF Assessment

The IDF made public its latest situational assessment as it engages enemies on multiple fronts.
Categories
Selected Articles

Steppe Diplomacy: Mongolia Deepens Central Asia Ties

Late on July 20th, the President of Mongolia, Ukhnaagiin Khürelsükh, touched down in Bishkek as part of a two-day state visit to Kyrgyzstan. It forms part of Khürelsükh’s wider Central Asian tour, with the President set to fly to Dushanbe following his sojourn in the Kyrgyz capital.

The trip builds on Kyrgyz President Sadyr Japarov’s 2023 visit to Ulaanbaatar, where he oversaw the opening of Kyrgyzstan’s first embassy in Mongolia and toured the Genghis Khan Museum in the capital.

A warm greeting

Khürelsükh was welcomed by Japarov on the red carpet at Manas International Airport, where traditional dances, music, and even a ceremonial eagle were laid on. The pair greeted each other like old friends before the motorcade swept along the empty roads towards the city.

Like Japarov, Khürelsükh has been president since 2021, although, unlike his Kyrgyz counterpart, his role is largely ceremonial. Indeed, current Mongolian politics offers a hint of nostalgia to those in Kyrgyzstan with fond memories of the pre-Japarov era. In June, the Mongolian Prime Minister was forced to resign after losing a vote of confidence in the country’s parliament. This followed months of protests after press reports covering his son’s extravagant spending.

The second day of the visit afforded Japarov the chance to play to statesman-like host and welcome a new visitor to the Presidential Palace – the Yntymak Ordo – which is still less than a year old. With temperatures hitting 37°C (98° Fahrenheit) in the Kyrgyz capital, the Mongolian leader arrived at the palace in a blacked-out Mercedes, flanked by a horse-mounted honor guard. The besuited leaders then stood in the baking sunshine to receive a military salute from Kyrgyzstan’s army.

A burgeoning friendship

Perhaps the scale of the pomp masks the limits of what can be achieved bilaterally.

Iskander Sharsheyev, an independent Kyrgyz economist, was keen to stress to The Times of Central Asia that the leaders did achieve some breakthroughs in terms of agriculture:

“Veterinary certificates were signed… This provides a new market for Kyrgyz producers. Kyrgyzstan and Mongolia signed a memorandum of cooperation in the field of wool processing, including cashmere. Mongolia is one of the world leaders in cashmere production, and the transfer of technology and training of specialists can dramatically improve the Kyrgyz textile sector.”

However, real announcements were thin on the ground and the language of diplomacy was heavy with blandishments: “We strive to develop mutually beneficial cooperation in all areas, especially in the trade and economic sphere,” said Khürelsükh, while Japarov noted that “comprehensive cooperation with Mongolia is one of the priority areas of the development of Kyrgyzstan’s foreign policy.”

The question is whether there is any substance behind this.

Economically, the numbers are hardly going to move the dial. In the first five months of this year, Kyrgyzstan exported $3.1 million worth of goods to Mongolia, much of it confectioneries. Mongolian exports in the other direction are even lower. While officials are trumpeting the rate of growth, which tripled in 2024, it’s worth having a sense of proportion – $3.1 million would struggle to get you a two-bedroom apartment in New York’s Upper East Side. Indeed, former Mongolian Prime Minister Sukhbaatar Batfold was forced to relinquish two apartments in New York worth $14 million after they were found to have been purchased using the proceeds of “unlawfully awarded mining contracts.”

But the limited economic rationale does not mean the visit is without merit: symbolism can often lay the foundation for strategic benefits in the long term.

Joining the regional club

As is customary amongst foreign leaders visiting Kyrgyzstan, Khürelsükh proceeded into the foothills of the Ala-Too mountains to lay a wreath at the Ata-Beyit memorial complex, which remembers Kyrgyz intellectuals purged during the 1930s.

Such memorials have particular resonance in Mongolia, which, although never officially part of the Soviet Union, was also a People’s Republic from 1924–1990, and effectively a vassal state of Moscow. Between 1937-39, it witnessed its own purges under Khorloogin Choibalsan, the “Stalin of the Steppe”, in which over 20,000 people were killed. Buddhist monasteries were burned down, and tens of thousands of monks were imprisoned or shot.

While not entirely compensating for trade turnover, such connections have the potential to be more than fodder for historians.

The two nations have a shared nomadic identity, with horses and yurts being amongst their cherished national symbols. Indeed, the past decade has seen the reemergence of the idea of a Greater Central Asia – including not just the Soviet “stans” but also Afghanistan and Mongolia.

Mongolia has been working hard to integrate itself into the regional club. In particular, hosting Uzbekistan’s president Shavkat Mirziyoyev in June this year, the first trip of an Uzbek head of state to Mongolia in the independence era. This came on the back of a visit to Tashkent by Khürelsükh in 2024.

This week’s trip, taking in Kyrgyzstan and Tajikistan, is part of a similar regional push.

“It highlights Mongolia’s strategic interest in new economic routes and strengthening political alliances,” said Sharsheyev, adding that this is especially important in the context of landlocked countries. “This can be perceived as an effort to strengthen regional resilience and reduce dependence on giant neighbors – China and Russia.”

Limited Options

Mongolia is currently experiencing rapid economic growth, primarily through its export of raw materials, especially coal. Its GDP is forecast to expand by 6.6% this year on the back of the growing economic benefits from the controversial Oyu Tolgoi copper mine on the Chinese border.

Even more so than Turkmenistan, the Mongolian economy is highly dependent on Beijing to buy its products. Some sources estimate that up to 92% of the country’s exports go to China.

In short, Mongolia is stymied by geography. While the countries of post-Soviet Central Asia have alternative trading routes with the rest of the world via Iran, the Caspian Sea, and a burgeoning route across Afghanistan, Mongolia is surrounded on all sides by Russia and China.

In the Altai region, Mongolia is tantalizingly close – 23 miles – to having a border with Kazakhstan, and many ethnic Kazakhs live in Mongolia. However, Russia and China are wedged between the two countries.

This is likely to limit Mongolia’s ability to reap the full benefits of any regional groupings that do not involve Russia or China, and is perhaps why Ulaanbaatar is seeking membership of the Moscow-led Eurasian Economic Union (EAEU), with which it signed an interim free-trade agreement in late June.

Kyrgyzstan has stated that it welcomes Mongolia’s bid to join the EAEU, while Ulaanbaatar has also expressed interest in becoming an observer member of the Organization of Turkic States.

Integration can also be seen on the academic front, with Ulaanbaatar hosting the 10th CAMCA Forum in June, a regional get-together for journalists, academics, and business people from Central Asia, Mongolia, the Caucasus, and Afghanistan.

For a country as isolated as Mongolia, perhaps establishing the idea that it is part of Central Asia has merits in itself. On that front, if the visit was about setting a benchmark and increasing Mongolia’s visibility in the region, it has been a success.

“Interest in the visit of the President of Mongolia [has been] observed not only in political and business circles, but also among the general public,” said Sharsheyev. This is facilitated by a high level of media coverage… The visit is [also] being discussed on social networks, which indicates a growing interest in cooperation between the two countries.”

“What a handsome President of Mongolia,” commented one Kyrgyz user on Instagram.

“We are brothers after all,” noted another.

Categories
Selected Articles

Ursula confronts the dragon in battle

Before an anticipated summit in China, top EU officials, including Ursula von der Leyen, António Costa, and Kaja Kallas, are visiting Japan. They are expected to discuss enhancing diplomatic relations and cooperation in the Indo-Pacific region, reflecting Europe’s shift towards securing alliances outside of its increasingly complex relationship with Beijing, reports 24brussels.

Meanwhile, Japan is facing its own political dynamics, with the anti-migration Sanseito party making strides in recent elections. Led by a former English teacher, the party gained attention through its controversial online campaigns. Nevertheless, Prime Minister Shigeru Ishiba’s government remains steadfast, emphasizing continuance in EU partnerships for rare earth minerals and security matters.

The EU aims to position itself as a reliable security partner compared to the U.S., as highlighted in a recent interview with Kaja Kallas. As the agenda shifts to the China summit, EU expectations are low, with only a joint statement on climate action anticipated. Tensions have escalated due to concerns over China’s support for Russia and a recent round of EU sanctions against Chinese firms linked to this support.

In a developing humanitarian crisis, Ireland’s Minister for Europe, Thomas Byrne, reaffirmed the country’s commitment to advocate for EU pressure on Israel over the dire situation in Gaza. He noted, however, the challenges in achieving unanimous support within the EU for proposed sanctions which faced opposition from Hungary and other member states.

Byrne stated, “Israel was entitled to respond to the terrorist attacks of Hamas, Hamas is a terrorist organization. But it’s gone way beyond in our view what would be allowed in response under international law,” highlighting a growing discontent in the face of alleged humanitarian violations. Further discussions among EU foreign ministers are scheduled, but the informal meeting in Denmark will not lead to binding decisions.

Recent geopolitical tensions also saw over two dozen countries, including prominent EU nations, condemn Israel’s actions in Gaza, urging the nation to end hostilities and facilitate humanitarian aid. Israeli officials, however, criticized Europe’s stance, alleging it assists Hamas in the ongoing ceasefire negotiations.

On the Eastern Front, fresh talks between Ukraine and Russia are set to take place in Turkey. President Volodymyr Zelenskyy announced these negotiations, emphasizing the ongoing commitment to seek resolution following escalating hostilities. Meanwhile, the European Commission has initiated plans to create 2,500 new jobs in cybersecurity and IT sectors to bolster its capabilities amid increasing threats.

In lesser-noticed developments, Germany has allowed Taliban officials to aid in deportations of Afghan nationals, marking a significant policy shift amidst pressures on migration management. Closer to home, public dissatisfaction in France has surged over a new pesticide law, with petitions flooding in to reverse the decision to allow the controversial acetamiprid back into the market.

Finally, Poland has announced the discovery of a significant oil deposit, potentially doubling its reserves, which could drastically change its energy dependency landscape.

As Europe navigates a complex geopolitical environment, member states continue to grapple with internal and external pressures, shaping their collective future in the international arena.

Categories
Selected Articles

Tourists enjoy volcanic eruption in southwestern Iceland

Tourists enjoy volcanic eruption in southwestern Iceland
Categories
Selected Articles

US Military Plans Reaper Drone Operations Near China, North Korea

The remotely controlled Reaper aircraft is capable of conducting spying missions and precision strikes.
Categories
Selected Articles

Organ donors’ lives endangered by rushed transplant procedures, investigation finds

RFK Jr. vows to fix ‘horrifying’ organ transplant system after troubling findings.
Categories
Selected Articles

Germany supports Poland’s measures to curb migration from Belarus

“Poland is Germany’s most important partner within the EU, alongside our French neighbours,” German Interior Minister Alexander Dobrindt said at the Polish-Belarusian border on Monday.