A new escalation in the feud between Elon Musk and OpenAI now spilling into the AI talent wars. For that, we'll turn to Mackenzie Sagalos in today's tech check. Morning, Mac. >> Hey, good morning, Carl.So, OpenAI just pulled off a quiet power move, poaching the former finance chief of Elon Musk's rival startup, XAI. Mike Liberator, who left XAI after just a few months on the job, starts this morning as OpenAI's new business finance officer for AI infrastructure. He'll report to CFO Sarah Frier and oversee t ...

Funding & Valuation - OpenAI is conducting a tender offer targeting $103 billion (103,000,000,000 USD), exceeding the initial $6 billion (6,000,000,000 USD) scope, while maintaining a $500 billion (500,000,000,000 USD) valuation [1] - OpenAI's previous liquidity event in January involved a $15 billion (15,000,000,000 USD) tender [2] Participation & Timeline - Current and former employees with shares held for over two years have until the end of September to decide on participation, with the transaction expected to close in October [2] Investors - Participating investors include Thrive, Dragon Ear, Soft Bank, Abu Dhabi-based MGX, and Tro [2] Market Dynamics - The competition for OpenAI shares has intensified due to the ongoing AI talent war [2]

I have a news alert on OpenAI. Um, McKenzie Sagalos has the latest for us. What are we learning here, Mackenzie.So, Scott, OpenAI has just gone out to its team with its biggest tender offer to date. A source familiar with this deal says that the share sale is coming in larger than expected. They are now targeting $10.3% billion, which is well above the 6 billion initially scoped while holding that valuation steady at half a trillion dollars.Eligible current and former employees who have held shares for more ...

CEO Compensation & Governance - Tesla is addressing Elon Musk's compensation for his contributions since the 2012 CEO Performance Award, last earned in 2017 [1] - The company is still facing legal challenges in Delaware courts regarding the 2018 CEO Performance Award, despite shareholder support [1][4] - A "good faith" interim award is recommended to compensate Elon Musk, reflecting Tesla's commitment to the 2018 agreement [2] - The 2018 CEO Performance Award resulted in a $23 billion stock-based compensation charge but increased market capitalization by $735 billion [4] - The interim award will be forfeited if the 2018 CEO Performance Award is fully reinstated by the Delaware courts, preventing any "double dip" [8] Strategic Importance of Elon Musk - Tesla is transitioning towards becoming a leader in AI, robotics, and related services, requiring Elon Musk's leadership [5] - Retaining Elon Musk is crucial due to the intensifying competition for AI talent [6] - Losing Elon Musk would mean losing a leader who attracts and retains talent at Tesla [6] Interim Award Details - The Board has approved a recommendation to grant Elon Musk restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award [7] - The award includes 96 million restricted shares, subject to Elon Musk paying a purchase price of $2334 per share upon meeting a two-year vesting term [8] - A mandatory holding period of five years from the grant date is required, except for tax payments or the purchase price [8]

Executive Compensation - Tesla proposes a $29 billion compensation package for Elon Musk [1] - The proposal is happening amid an 'AI talent war' [1] Industry Context - The tech industry is currently experiencing a competitive environment for AI talent [1]

Core Points - Tesla has proposed a new pay package for Elon Musk valued at $29 billion, consisting of 96 million restricted shares of Tesla stock [1] - The new compensation package aims to retain and incentivize Musk amid a competitive landscape for AI talent [2] - Musk's previous pay package from 2018, which was valued at approximately $46.8 billion, is currently unresolved following a legal ruling [1] Summary by Sections Pay Package Details - The Tesla board has recommended a "good faith" CEO performance award for Musk, amounting to 96 million restricted shares worth over $29 billion based on current stock value [1] Rationale for New Package - Board members stated that the new pay package is essential to retain and incentivize Musk due to an "ever-intensifying AI talent war" [2] Previous Compensation Context - Musk's 2018 pay package, which was valued at around $46.8 billion in June, remains in limbo after being struck down by a Delaware judge last December [1]

RT Tesla (@Tesla)A Letter to Our Shareholders on the 2025 CEO Interim AwardDear Fellow Tesla Shareholders,Today we announce an important first step in compensating Elon Musk for his extraordinary work at Tesla. As you know, Elon has not received meaningful compensation for eight years since the 2012 CEO Performance Award was last earned in 2017. Despite overwhelming support from you in 2018 and again in 2024, our legal efforts continue in the Delaware courts to reinstate the 2018 CEO Performance Award. Desp ...

Group 1 - Meta has appointed Shengjia Zhao, a co-creator of ChatGPT and former lead scientist at OpenAI, as the chief scientist of its Superintelligence Labs, marking a significant escalation in the AI talent war [1][2] - Zhao will collaborate directly with CEO Mark Zuckerberg and Alexandr Wang, Meta's newly appointed chief AI officer, as part of a broader multibillion-dollar investment strategy in AI, which includes a $15 billion investment in Scale AI [2] - Meta has also recruited three researchers from OpenAI's Zurich office, expanding its Superintelligence Labs team with talent previously associated with OpenAI, Anthropic, and Google [3] Group 2 - The competition for AI talent is intense, with estimates suggesting fewer than 1,000 individuals globally can build frontier AI models, leading companies to seek alternative incentives like hackathons and computing power [4] - Executives in the tech industry have mixed feelings about Meta's aggressive hiring strategy, with some acknowledging the necessity of such actions given Meta's current position in the AI landscape [9] - OpenAI's CEO Sam Altman criticized Meta's focus on financial incentives for talent acquisition, suggesting it may not foster a positive company culture [10]

Core Insights - Meta is investing heavily in attracting AI talent due to its current position behind competitors like OpenAI, with offers reaching up to $100 million for top researchers [1][2] - The AI talent market is highly competitive, with companies like OpenAI and Anthropic offering substantial salaries to retain their staff, indicating a shift in the industry towards higher compensation [4][10] - Despite the financial incentives, many researchers prioritize the mission and impact of their work over salary, as highlighted by comments from leaders in the AI field [2][3] Company Strategies - Meta's strategy includes recruiting high-profile talent from leading AI labs, reflecting a need to catch up in the AI race [1] - Google has maintained a focus on healthy retention metrics despite the competitive landscape, indicating a stable workforce [11] - Companies are exploring various tactics to retain talent, including noncompete agreements to limit employee movement to competitors [12] Salary Trends - OpenAI's average salary for technical staff is reported at $292,115, with top positions earning up to $530,000, while Anthropic averages $387,500 with top salaries reaching $690,000 [4] - New startups like Thinking Machines Lab are also entering the market with competitive salaries, further driving up compensation expectations in the industry [9]

AI Talent & Competition - The AI race is expected to have multiple winners, including both startups and large companies [2] - The significant investment in AI talent is economically rational if it leads to transformative innovations, such as curing cancer [3][4] - While building frontier models requiring $50 billion computers may be challenging for startups, opportunities remain in AI applications, specific areas like cancer discovery, education, workflow integration, and new consumer apps [6][7] AI in Healthcare - Manis AI aims to create a drug discovery engine for various forms of cancer, potentially partnering with pharma companies [8][9][10] - Investment in AI-driven ultrasound technology seeks to provide a precise and gentle tool for brain treatment, addressing the limitations of current methods [10][11] Political & Economic Landscape - There is sympathy for the cause of reducing the national deficit, which is projected to add 2.4 trillion USD by 2034 [13] - The primary concern lies in the increasing debt service, which constitutes a significant portion of the federal budget [14] - There is growing hesitancy within the tech ecosystem regarding the Trump administration, primarily due to tariff policies and business instability [16]