The AI Boom is Sending Silicon Valley's Talent Wars To New Extremes

Tech companies are serving up million-dollar-a-year compensation packages, accelerated stock-vesting schedules and offers to poach entire engineering teams to draw people with expertise and experience in the kind of generative AI that is powering ChatGPT and other humanlike bots. They are competing against each other and against startups vying to be the next big thing to unseat the giants. From a report: The offers stand out even by the industry's relatively lavish past standards of outsize pay and perks. And the current AI talent shortage stands out for another reason: It is happening as layoffs are continuing in other areas of tech and as companies have been reallocating resources to invest more in covering the enormous cost of developing AI technology.

'There is a secular shift in what talents we're going after,' says Naveen Rao, head of Generative AI at Databricks. 'We have a glut of people on one side and a shortage on the other.' Databricks, a data storage and management startup, doesn't have a problem finding software engineers. But when it comes to candidates who have trained large language models, or LLMs, from scratch or can help solve vexing problems in AI, such as hallucinations, Rao says there might be only a couple of hundred people out there who are qualified.

Some of these hard-to-find, tier-one candidates can easily get total compensation packages of $1 million a year or more. Salespeople in AI are also in demand and hard to find. Selling at the beginning of a technology transition when things are changing rapidly requires a different skill set and depth of knowledge. Candidates with those skills are making around double what an enterprise software salesperson would. But that isn't the norm for most people working in AI, Rao says. For managerial roles in AI and machine learning, base-pay increases ranged from 5% to 11% from April 2022 to April 2023, according to a WTW survey of more than 1,500 employers. The base-pay increases of nonmanagerial roles ranged from 13% to 19% during the same period.

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