The AI race is a fierce one in every regard, and to put into perspective just how charged up the competition is, we now have employees being poached with mind-numbing offers. In a recent podcast episode with his brother Jack, Sam Altman, the CEO of OpenAI, accused Meta of poaching its employees with ludicrous offers. According to his claims, Meta was offering $100 million hiring bonuses to employees who agreed to switch teams to help the Facebook company build up its lackluster AI services.
It’s no surprise that Meta is poaching AI experts, as its users have been largely unimpressed with its AI services, and OpenAI has some of the best minds in the industry working on its platform. What’s more surprising is the amount that Meta is reportedly willing to pay. Is employee poaching illegal? Not necessarily, but many ethical dilemmas have always surrounded the traditions of poaching employees, and we haven’t yet arrived at a conclusion of what such practices mean for a business that indulges in them.
Image: Pexels
OpenAI Accuses Meta of Poaching AI Experts, No Major Betrayals Have Occurred Just Yet
Talking candidly on the Uncapped podcast, Altman brought up an interesting nugget of information regarding Meta’s poaching of AI experts. He claimed that Meta was “making giant offers to a lot of people” on his team, such as providing “like $100 million signing bonuses and more than that [in] compensation per year.” The accusation levied against Meta was brazen, but so was the supposed $100 million offer from Meta.
Altman did not elaborate on what he knew regarding the specifics of the offer or how many of his employees received such a deal, but he confirmed that his best people had not taken Meta up on the offer. He added that he respected Meta for being aggressive and trying different things to bring its AI services up one way or another, but he also claimed that Meta wasn’t very great with innovation. This is something his own OpenAI staff have proven themselves to be time and again.
It is also important to acknowledge that OpenAI employees aren’t just staying at the company for the experience. OpenAI reportedly offers its AI researchers impressive salaries, with some rumored to be earning $10 million annually. The company has also provided them with impressive retention bonuses and equity packages that exceed $20 million, according to Reuters.
Meta Is Struggling to Find Its Footing in the AI Industry
Zuckerberg’s frustrations with Meta’s halting progress with AI have been apparent in more ways than one. One stark example of this is Meta’s $14.3 billion investment in Scale AI for a 49% stake in the company, and the hiring of the young CEO of the organization, Alexandr Wang. Scale AI has been growing as a business, and its role in helping other platforms develop their AI applications could be greatly beneficial to Meta.
It is also reported that Zuckerberg is working to build a “Superintelligence” AI team at his company to try and speed up Meta’s progress with AI. Bloomberg reports that Meta has hired Google DeepMind researcher Jack Rae, but many of the company’s other poaching attempts have been unsuccessful.
While Meta hasn’t confirmed or denied these reports of poaching, it is extremely likely that Meta’s $100 million hiring bonuses are real and the company is willing to make such heavy investments in order to regain some ground in the AI industry. Recent failures and privacy concerns around its Meta AI app have showcased just how bad things are at the organization, and any progress could be a big win for the company. So does this make the poaching of employees acceptable?
The Ethical Dilemma of Poaching Employees
AI companies are not necessarily known for being weighed down by ethical dilemmas, but it is important to discuss the pros and cons of poaching and acknowledge that it may not be the ideal business practice. HR teams and recruiters might be tempted to lure talent away from competition, but this also shows employees that some underhanded practices are permissible at the organization.
While in a way, employees who receive such offers now have an opportunity to return to their employers and ask for more compensation in exchange for their continued loyalty, this creates a very challenging relationship between employers and employees—both parties lose some of the trust and respect for the other.
In a cut-throat industry such as the AI business right now, it can be smart to take risks and play your hand at the right opportunity to get the most out of the situation, but it also comes with risks. For many, poaching employees is just a normal part of doing business but employers and employees both need to understand the risks involved.
An organization that manages to poach employees from a competitor may succeed in the short term, but it is equally likely that the employee will quit just as easily when another lucrative offer comes their way. To avoid this from occurring, businesses will need to start putting non-solicitation and non-compete agreements in place, and this adds another level of complexity to the situation. Such agreements bring their own legal issues with them.
Is Employee Poaching Legal?
Poaching employees is fairly legal, but it comes with a lot of challenges that need to be considered carefully before exploring it as a viable option. Organizations can alternatively tighten up their hiring process and look for unique talent in the job market, within educational institutions, and via non-traditional platforms like social media, to recruit workers who have the expertise and creativity needed for the role. Providing them with the opportunity to grow together could lead to remarkable results.
The AI talent war in 2025 has a few key players at the top of the ladder, but this does not mean others do not have the talent and vision to succeed to a similar degree. With the right resources and opportunities, many other workers could also help their employer expand their business, but they will need the employer’s support to make it happen.
As OpenAI accuses Meta of poaching, we’re certain that most of the top AI businesses are doing something similar. Before an organization considers following in their footsteps, it is important to consider the risks and rewards evenly before making an offer.
Subscribe to The HR Digest for more insight into the ever-evolving landscape of work and employment.
