OpenAI, the Microsoft-backed artificial intelligence research firm behind ChatGPT, has announced million-dollar bonuses for approximately 1,000 employees, representing nearly one-third of its workforce.
The bonuses are aimed at retaining top talent in the face of intensifying competition from tech giants and startups aggressively recruiting AI researchers and engineers.
OpenAI announced the news just ahead of launching GPT-5, its most advanced large language model to date.
CEO Sam Altman communicated the decision via Slack, describing it as a “new thing” for the company and a response to shifting market dynamics.
OpenAI Bonus Structure and Eligibility
The bonuses will be distributed quarterly over a two-year period. Employees can choose to receive the payouts in cash, stock, or a combination of both.
The amounts vary based on role, seniority, and performance:
- Top researchers will receive mid-single-digit millions
- Engineers will receive bonuses in the hundreds of thousands
- Departments eligible include applied engineering, scaling, and safety
OpenAI has reportedly offered bonuses to a large number of employees for the first time. This signals a strategic shift in its approach to compensation and retention.
Responding to Market Pressures and Talent Poaching
The move comes amid a surge in demand for elite AI talent, with competitors like Meta and xAI offering massive compensation packages to lure top researchers.
Meta, for instance, has reportedly offered signing bonuses of up to $100 million and long-term packages exceeding $300 million for select hires.
Altman acknowledged the intensity of the current talent market, calling it “the most intense” of his career.
He emphasized that only a “medium-sized handful” of individuals globally possess the skills needed to make the algorithmic breakthroughs required for superintelligence.
GPT-5 Launch and Organizational Growth
The bonus announcement coincided with the rollout of GPT-5, which OpenAI describes as its smartest and most capable model yet.
GPT-5 includes a unified system that adapts to user needs.
It dynamically switches between standard and advanced reasoning models based on intent and conversation complexity.
OpenAI’s user base continues to grow, with 700 million weekly active users and over 3 billion messages processed daily.
The company is preparing for a secondary share sale. This move could raise its valuation to $500 billion, up from a previous $300 billion.
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