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OpenAI drops equity waiting period to encourage risk-taking

OpenAI wants to boost risk tolerance among its workforce. According to The Wall Street Journal, the company has scrapped a rule requiring new hires to stay for at least six months before their equity vests. The change aims to ease employee concerns about being laid off before receiving their first batch of shares. Previously, OpenAI had already shortened this waiting period from 12 months to six in April.

The move underscores the fierce competition for AI talent. Tech giants like Meta, Google, and Anthropic are courting top researchers with high compensation. OpenAI is set to spend around $6 billion on stock-based compensation this year, nearly half its projected revenue. These high personnel costs are putting additional pressure on margins in an increasingly competitive market.

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