OpenAI's stock compensation averages $1.5 million per employee, dwarfing every tech startup in history

OpenAI is handing out stock-based compensation averaging $1.5 million per employee, about 34 times what major tech companies typically paid before going public. According to financial data shown to investors and reported by the Wall Street Journal, the company's roughly 4,000 employees are getting more than any tech startup has ever offered. That's also more than seven times what Google paid back in 2003.

Share-based compensation as a percentage of annual revenue

Sources: Wall Street Journal, Equilar analysis. All figures refer to the year before each company's IPO, except OpenAI, which uses 2025 projections.

The generous pay is meant to keep OpenAI ahead in the AI race, but it's also pushing up losses. Meta CEO Mark Zuckerberg has turned up the pressure by offering top employees packages worth hundreds of millions of dollars and poaching more than 20 OpenAI staffers. OpenAI expects its compensation costs to climb by $3 billion annually through 2030.