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The Battle for AI Dominance: OpenAI's Multimillion-Dollar Move Against Google

OpenAI challenges Google in the AI talent war with lucrative offers and innovative AI chip development.

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OpenAI is reportedly courting Google's elite AI researchers with enticing multimillion-dollar compensation packages to strengthen its AI capabilities. This initiative, highlighted in a report by The Information, is not just about lucrative pay but also includes access to cutting-edge technology resources, such as AI accelerator chips for advanced testing.

Concurrently, OpenAI is navigating potential avenues for an employee share sale, which, as Bloomberg reported last month, could elevate the company's valuation to an impressive $86 billion. The success of these recruitment efforts could enable top Google AI researchers to reap the benefits of compensation packages ranging from $5 million to $10 million following the anticipated share sale.

OpenAI's Strategic Talent Acquisition

OpenAI's aggressive recruitment targets senior AI researchers at Google, with compensation packages ranging between $5 million and $10 million, primarily in stock options. This initiative focuses on those working on Google's Gemini family of AI models. Additionally, OpenAI has raised salaries for some junior employees due to market conditions. This talent acquisition battle is not one-sided, as Google has also successfully poached high-profile researchers from OpenAI by offering competitive salaries.

The Computing Resources Arms Race

openai lures google's top ai researchers with multimillion dollar offers

The rivalry extends beyond talent acquisition to computing resources. OpenAI's CEO, Sam Altman, has indicated that Google might retain a computing advantage until Microsoft, a key OpenAI partner, enhances its AI chip availability next year. This dynamic underscores the critical role of computing power in leading AI development.

Microsoft's Role in AI Hardware

Microsoft is reportedly developing its AI chip, "Athena," to rival Nvidia's H100 GPU and join other tech giants in the AI hardware race. The Athena chip, expected to be revealed at the Ignite developer conference in November, could be offered as a cloud solution for AI developers. This development aligns with the broader industry trend of seeking alternatives to Nvidia's dominance in the AI chip market. Microsoft is also collaborating with Advanced Micro Devices (AMD) on the next AI chip, the MI300X, for release in the fourth quarter.

Google's AI Chip Development

Google has been a player in AI chip development since at least 2015, with its Tensor Processing Unit (TPU). Designed for high-volume, low-precision computing, TPUs are more efficient in input/output operations than traditional GPUs. Google has deployed TPUs in various applications, including the historic AlphaGo vs. Lee Sedol Go game, Google Street View text processing, and training its current AI models. Since 2018, Google has offered TPUs to third parties through its Cloud TPU service.


The escalating battle for AI talent and hardware between OpenAI and Google reflects the high stakes in the AI industry. As these companies invest heavily in talent and technology, the landscape of artificial intelligence continues to shift, heralding new advancements and intensifying competition in Silicon Valley and beyond.