📺 Stream EntrepreneurTV for Free 📺

Elon Musk Says He's Raising Tesla Engineer Salaries Because OpenAI Has Been Aggressively Poaching Them With Massive Paydays Even Mark Zuckerberg and Sergey Brin are reportedly making personal calls to AI researchers to scoop up new talent or convince current employees to stay.

By Kwan Wei Kevin Tan

Key Takeaways

  • Elon Musk says he's hiking the salaries for those working on Tesla's AI engineering team.
  • The pay raise, Musk said, was because OpenAI has been "aggressively recruiting Tesla engineers."
  • "The talent war for AI is the craziest talent war I've ever seen!" Musk said.
entrepreneur daily
Beata Zawrzel/NurPhoto | Getty Images; Andrew Caballero-Reynolds/AFP via Getty Images via Business Insider
Tesla CEO Elon Musk (left) and OpenAI CEO Sam Altman (right).

This article originally appeared on Business Insider.

AI engineers working at Tesla may have Sam Altman and OpenAI to thank for their salary bumps.

Tesla CEO Elon Musk said on Wednesday that his company is increasing the compensation packages for those working on the AI engineering team. The pay raise, Musk said, was in response to OpenAI's attempts to poach Tesla's engineers.

"They have been aggressively recruiting Tesla engineers with massive compensation offers and have unfortunately been successful in a few cases," Musk said of OpenAI's hiring efforts in an X post on Wednesday.

Musk made the remarks in response to a story by The Information that was published on the same day. According to the report, Tesla machine-learning scientist Ethan Knight is moving over to join Musk's AI company, xAI.

"Ethan was going to join OpenAI, so it was either xAI or them," Musk wrote on X.

Representatives for OpenAI did not immediately respond to a request for comment from Business Insider sent outside regular business hours.

Competition for AI talent has been heating up as tech companies race to become dominant players in the field. Aside from offering eye-watering salaries, some Big Tech leaders have adopted a personal touch when it comes to wooing engineers.

Meta's Mark Zuckerberg has been reportedly writing personal emails to AI researchers at Google's DeepMind, per The Information. In fact, Zuckerberg's Meta has even offered jobs to candidates without conducting any interviews, the outlet reported.

It's not just Zuckerberg's who's had to do personal reachouts. Google cofounder Sergey Brin had to personally call an employee who was thinking of leaving Google for OpenAI. According to The Information's report, Brin made several promises to convince the employee to stay, including an offer of higher pay.

"The talent war for AI is the craziest talent war I've ever seen!" Musk said on Wednesday.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Business News

Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

On an earnings call, Musk told shareholders that Tesla could start producing new, affordable electric cars earlier than expected.

Science & Technology

10 Things CIOs are Prioritizing Today to Stay Ahead in 2024

The role of the CIO has become increasingly important as technology continues to shape the business world.

Living

Younger Americans Don't Necessarily Want to Retire in Florida — and the 2 Affordable States at the Top of Their List Might Surprise You

Gen Z and millennials may be decades away from retirement, but some spots are already on their radar.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.