WSJ: OpenAI’s Stock Awards Hit Historic Levels — Averaging About $1.5M Per Employee in 2025

OpenAI is paying employees at a level rarely seen in Silicon Valley history. According to financial projections the company shared with investors and first reported by The Wall Street Journal, OpenAI’s average stock-based compensation is estimated at roughly $1.5 million per employee in 2025 — a figure that dwarfs what previous tech giants typically awarded before going public. The Wall Street Journal+1

The report highlights how the AI talent war has pushed compensation into “founder-era” territory for some highly sought-after researchers and engineers — as major rivals compete aggressively for the same small pool of top talent. The Wall Street Journal+1

Why OpenAI is paying so much

The primary driver is retention and recruiting. As generative AI becomes core to corporate strategy, elite AI staff have become some of the most expensive employees on the planet — and OpenAI is trying to avoid losing key people to rivals offering enormous packages. The Wall Street Journal+1

OpenAI’s workforce is estimated at about 4,000 employees, meaning the total equity bill can quickly become massive even if the headline number is an average. The Wall Street Journal+1

A major policy shift: OpenAI dropped the “vesting cliff”

In another sign of how heated the market has become, OpenAI reportedly eliminated its six-month vesting cliff — the waiting period new hires previously had to complete before they began earning equity. The move is designed to make joining OpenAI less risky for new recruits and more competitive against rivals. The Wall Street Journal+1

Stock compensation could consume nearly half of OpenAI’s revenue

One of the most striking details in the WSJ report: OpenAI’s stock-based compensation is projected to equal about 46% of its 2025 revenue, a level that can amplify operating losses and create shareholder dilution. The Wall Street Journal+1

The WSJ also reported that these costs could keep rising for years, potentially adding around $3 billion annually through 2030 as competition remains intense. The Wall Street Journal+1

The bigger picture: a Silicon Valley “arms race”

Whether this model is sustainable is an open question — especially while AI companies are also spending heavily on chips, data centers, and infrastructure. But the direction is clear: in the race to build the best models, talent is now a primary battleground, and compensation is one of the sharpest weapons. The Wall Street Journal+1