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Elon Musk will raise wages for Tesla AI workers to curb OpenAI poaching

Amid the escalating war for artificial intelligence (AI) talent, Tesla CEO Elon Musk Said in X’s post OpenAI has been “aggressively recruiting Tesla engineers with huge pay packages,” so Tesla will increase pay for its artificial intelligence engineering team.

Further posts from the 52-year-old billionaire on the social network he owns appeared to confirm that the issue focused on pay rather than employee dissatisfaction with the company’s working conditions.One user asked: “Will Tesla match these compensation packages? Or will it exceed [sic] These employees just want to make a difference, so the match doesn’t matter? ” and Musk responded “Tesla is increasing compensation for our artificial intelligence engineering team (depending on progress milestones).”

Previously, “The Information” reported that a well-known machine learning expert from Tesla was about to join Musk’s artificial intelligence company xAI. Musk responded to reports that engineers are planning to jump ship to OpenAI due to talent poaching.

Elon Musk vs OpenAI: The battle for AI talent

“The war for AI talent is the craziest war for talent I’ve ever seen!” Musk said in another tweet. He’s not wrong — many big tech companies are working tirelessly to expand their AI capabilities, and the bubble is still growing. Earlier this year, Mark Zuckerberg announced that Meta wanted to start creating general artificial intelligence, acknowledging the fierce competition among companies for top talent.

A 2023 report showed that OpenAI offered the highest salaries to new PhD graduates at $865,000. Tesla ranked fourth with an eye-popping $780,000.

The relationship between Musk and OpenAI’s Sam Altman has been tense for some time. Earlier this year, Musk announced his intention to sue OpenAI and Altman, accusing them of violating a promise they made when they formed the company together. OpenAI contradicted him in court, claiming some of his accusations were “incoherent.” They also expressed concern that Musk could use the discovery phase of the lawsuit to obtain proprietary information and urged caution.

Subsequently, Musk decided to open source xAI’s chatbot Grok in response to OpenAI’s decision that he disagreed with.

Featured Image Credit: Generated by MidJourney

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