Core Insights - OpenAI is set to offer an average of $1.5 million in stock-based compensation per employee in 2025, significantly exceeding historical norms in the tech sector [1] - This compensation package is over seven times the value of what Google provided in 2003, adjusted for inflation, and approximately 34 times higher than stock-based pay at 18 other major tech companies before their IPOs [2] Compensation Strategy - OpenAI's stock compensation is projected to consume about 46% of its anticipated revenue for the year, compared to the typical 6% allocated by similar firms in their pre-IPO phases [3] - The aggressive compensation strategy is driven by intense competition for top AI talent, with companies like Meta actively recruiting OpenAI staff [4] Financial Implications - OpenAI's stock compensation expenses are expected to increase by $3 billion annually through 2030, contributing to ongoing operating losses and potential dilution for existing shareholders [5] Organizational Evolution - Founded in 2015 as a nonprofit, OpenAI transitioned to a capped-profit model in 2019 and recently restructured into a hybrid setup, balancing commercial operations with nonprofit oversight [6] - This evolution reflects the tension between its mission-driven origins and the commercial needs of scaling AI [6] Industry Impact - The high compensation packages are redefining how startups attract and retain talent, potentially resetting expectations across the tech sector [8] - OpenAI's approach signals a new era where employee stakes may rival those of founders, challenging traditional startup growth and valuation models as the industry moves towards 2026 [8]