Hua Er Jie Jian Wen·2025-07-07 16:45Core Insights - OpenAI has significantly increased employee compensation in response to intense competition for talent in the AI sector, with stock-based compensation costs soaring to $4.4 billion, representing 119% of its revenue [1][2] - The company anticipates a reduction in stock-based compensation as a percentage of revenue to 45% this year and below 10% by the end of 2030, although these projections may be optimistic given recent talent poaching by Meta [1][2] Group 1: Stock-Based Compensation - OpenAI's stock-based compensation costs are unprecedented in the tech industry, far exceeding those of other major companies prior to their IPOs, such as Google (16%), Facebook (6%), and Snowflake (30%) [2] - The company expects to spend approximately $6 billion on inference computing for running ChatGPT and AI models this year, slightly above the anticipated stock-based compensation expenses [2] - Discussions among OpenAI executives have included a plan for employees to hold about one-third of the restructured company's equity, with Microsoft and other investors sharing the remaining equity [2] Group 2: Talent Acquisition and Retention - Meta's aggressive recruitment strategy has directly prompted OpenAI to raise salaries, with reports indicating that Meta has hired at least nine key researchers from OpenAI, including core project leaders [3] - OpenAI's CEO has acknowledged the high-pressure work environment, which has contributed to talent loss, and has committed to recalibrating compensation to attract and retain top talent [3] Group 3: Investor Concerns - Investors are increasingly worried about the dilution of their equity stakes due to OpenAI's substantial stock-based compensation, which could significantly reduce the value of existing shares held by major backers like Thrive Capital, SoftBank, and Microsoft [4] - Since 2021, OpenAI has allowed current and former employees to sell approximately $3 billion in stock awards, highlighting the necessity of generous equity rewards for talent retention [4] - Additional dilution risks may arise from potential legal settlements involving Elon Musk and the company's recent acquisitions, which could further impact shareholder value [4]