August 4, 2025 – Elon Musk has made a startling revelation: Despite xAI’s initial compensation packages not being “outrageously” high, several senior engineers from Meta are making the leap to his AI venture. Musk is confident that, in the long run, xAI’s valuation will surpass that of Meta. He also highlighted xAI’s tradition of offering substantial pay raises to top talent.
This development comes amid a backdrop of intense competition for AI expertise in the tech industry. Recently, it was reported that Meta had reached out to over 100 employees at OpenAI, successfully recruiting at least 10 of them—a move some analysts have described as a “desperate” bid to strengthen its AI capabilities. In a counter-move, Meta secured the services of Shengjia Zhao, a key figure behind ChatGPT, who joined Meta’s Superintelligence Lab as chief scientist. However, not everyone was swayed by Meta’s overtures. Some declined the offers, citing their belief that OpenAI is closer to achieving true artificial general intelligence (AGI), preferring the efficiency and flexibility of smaller teams, as well as a reluctance to engage in advertising-driven projects.
Musk’s comments coincide with a period of heightened rivalry among major AI players. xAI has impressed industry watchers with its rapid deployment, while OpenAI, Google, and Meta are all vying fiercely for top researchers. Meta has significantly expanded its AI division and allocated $14 billion to Scale AI. In June, the company launched its Superintelligence Lab, aiming to serve as a hub for leading experts in the field.
OpenAI CEO Sam Altman has claimed that Meta offered compensation packages worth up to $100 million to lure his team members away, a claim that Meta has denied. According to Wired magazine, Meta sent out more than a dozen job offers to OpenAI staff. In one instance, a senior researcher was even considered for the role of chief scientist but ultimately chose not to accept the position. Additionally, Meta promised that any shares or stock options granted to new hires would fully vest after just one year of service. However, Benjamin Mann, co-founder of Anthropic, stated that his company’s employees were not enticed by Meta’s generous incentives. He emphasized that Anthropic’s staff prioritize the organization’s mission over financial rewards.
