Does OpenAI overpay employees?
Elon Musk’s AI company, xAI, filed a 107-page complaint against OpenAI in November, accusing the ChatGPT maker of “aggressively recruiting employees with offers of lavish compensation” and spending “$1.5 billion on personnel for just 1,500 employees.” The actual number of employees OpenAI has is unclear: According to the employee database RocketReach, OpenAI has 4,768 staff members.
Musk alleges that OpenAI has tried to reduce competition by “offering vastly inflated compensation” to bring in more AI talent than it needs to prevent competitors from hiring those people.
So, what does OpenAI’s compensation look like, and is it really as “lavish” or “inflated” as Musk makes it out to be? A new Business Insider analysis examined wage data from specialty visa applications filed by OpenAI last year.
Related: Microsoft’s Salary Guidelines Were Leaked — Here’s How Much New Employees Make
The data applies to foreign workers hired by OpenAI on specialty visas, like the H-1B, and offers a peek into the otherwise undisclosed pay that OpenAI offers its employees.
BI compared the specialty visa salary data to the “prevailing wage,” or average wage paid to workers as determined by the U.S. Department of Labor. Employees hired on specialty visas must make at least as much as the prevailing wage.
BI’s comparison shows that OpenAI typically offers pay above the prevailing wage for several roles, including communications and data science positions. The 86 roles for which BI obtained specialty visa data have salaries ranging from $145,000 to $530,000 and paid, on average, 87% more than the norm set by the Department of Labor.
Musk’s xAI offered a similar range by comparison, paying 10 roles salaries ranging from $250,000 to $500,000. However, xAI’s salaries were only 37% higher than the average prevailing wage, indicating less of a gap between expected salaries and pay that workers were awarded.
How Much OpenAI Pays
These are the top five roles for which OpenAI paid the most above the prevailing wage, according to specialty visa data. These jobs have the highest percent difference between the average prevailing wage and the average wage at OpenAI.
1. Member of Communications Staff
Average wage paid by OpenAI: $286,000
Average prevailing wage: $95,098
Percent difference: 201%
2. Member of Data Science Staff
Average wage paid by OpenAI: $310,000
Average prevailing wage: $116,646
Percent difference: 166%
3. Member of Product Staff
Average wage paid by OpenAI: $310,000
Average prevailing wage: $134,590
Percent difference: 130%
4. Member of Technical Staff (Research & AI Systems)
Average wage paid by OpenAI: $399,545
Average prevailing wage: $176,123
Percent difference: 127%
5. Member of Technical Staff (Software Engineering)
Average wage paid by OpenAI: $289,373
Average prevailing wage: $141,001
Percent difference: 105%
For the full report, click here.
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