Loyalty Has Become a Luxury in Silicon Valley, Where Big Bucks Are the Ultimate Loyalty Payoff.
In the once-sacred institution of the tech startup, loyalty has been relegated to the dustbin. What was once considered the ultimate badge of honor – staying with your company until it went bust or until you cashed out on stock options – is now a mere afterthought for founders and their top researchers. In Silicon Valley, where the allure of generative AI has proven too great to resist, anyone can be lured away by the promise of millions.
In recent months alone, there have been at least three major "acqui-hires" in Silicon Valley – essentially, tech companies snapping up rivals for their prized research talent. Meta invested $14 billion in Scale AI and brought on its CEO; Google spent $2.4 billion to license Windsurf's technology and integrate it with DeepMind; while Nvidia spent $20 billion on Groq's inference technology and hired its CEO.
Meanwhile, high-stakes musical chairs continue to play out among the AI labs. Just three weeks ago, OpenAI rehired several researchers who had left less than two years earlier for Mira Murati's startup, Thinking Machines Lab. Anthropic, which was founded by former OpenAI staff, has also been poaching talent from ChatGPT maker OpenAI.
The talent wars in Silicon Valley have become so heated that investors are now vetting founding teams "for chemistry and cohesion more than ever," says Max Gazor of Striker Venture Partners. Protective provisions are increasingly common, requiring board consent for major IP licensing or similar scenarios.
Founders and researchers once believed in the mission and values of their companies, willing to stay on until the end. But times have changed. With AI innovation accelerating at breakneck speed, workers now feel they can hone their skills quickly enough to move on to a bigger challenge. According to Steven Levy, who has been reporting on Silicon Valley for decades, working for an AI startup over the past few years offers a lot – an accelerated experience that's equivalent to working for a startup in a different era of tech.
This generation of tech workers also has a wider range of opportunities than their predecessors did. Decades ago, when Lew Tucker joined Thinking Machines Corporation, there were only around 50 people; by the time it went belly up and got acquired by Sun Microsystems, that number had ballooned to over 500. "Very few people left," he recalls.
In contrast, today's tech workers are increasingly pragmatic, prioritizing their careers over loyalty. The halo surrounding Silicon Valley has dimmed significantly since its heyday in the 2000s, when founders and early employees stuck around for years, reaping rewards for their loyalty. Now, idealism is trading places with pragmatism.
The question remains: at what cost will this generation of AI talent name its price?
In the once-sacred institution of the tech startup, loyalty has been relegated to the dustbin. What was once considered the ultimate badge of honor – staying with your company until it went bust or until you cashed out on stock options – is now a mere afterthought for founders and their top researchers. In Silicon Valley, where the allure of generative AI has proven too great to resist, anyone can be lured away by the promise of millions.
In recent months alone, there have been at least three major "acqui-hires" in Silicon Valley – essentially, tech companies snapping up rivals for their prized research talent. Meta invested $14 billion in Scale AI and brought on its CEO; Google spent $2.4 billion to license Windsurf's technology and integrate it with DeepMind; while Nvidia spent $20 billion on Groq's inference technology and hired its CEO.
Meanwhile, high-stakes musical chairs continue to play out among the AI labs. Just three weeks ago, OpenAI rehired several researchers who had left less than two years earlier for Mira Murati's startup, Thinking Machines Lab. Anthropic, which was founded by former OpenAI staff, has also been poaching talent from ChatGPT maker OpenAI.
The talent wars in Silicon Valley have become so heated that investors are now vetting founding teams "for chemistry and cohesion more than ever," says Max Gazor of Striker Venture Partners. Protective provisions are increasingly common, requiring board consent for major IP licensing or similar scenarios.
Founders and researchers once believed in the mission and values of their companies, willing to stay on until the end. But times have changed. With AI innovation accelerating at breakneck speed, workers now feel they can hone their skills quickly enough to move on to a bigger challenge. According to Steven Levy, who has been reporting on Silicon Valley for decades, working for an AI startup over the past few years offers a lot – an accelerated experience that's equivalent to working for a startup in a different era of tech.
This generation of tech workers also has a wider range of opportunities than their predecessors did. Decades ago, when Lew Tucker joined Thinking Machines Corporation, there were only around 50 people; by the time it went belly up and got acquired by Sun Microsystems, that number had ballooned to over 500. "Very few people left," he recalls.
In contrast, today's tech workers are increasingly pragmatic, prioritizing their careers over loyalty. The halo surrounding Silicon Valley has dimmed significantly since its heyday in the 2000s, when founders and early employees stuck around for years, reaping rewards for their loyalty. Now, idealism is trading places with pragmatism.
The question remains: at what cost will this generation of AI talent name its price?