AI Talent Competition Resembles Professional Sports

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 25, 2024. Meta Platforms Inc. debuted its first pair of augmented reality glasses, devices that show a combined view of the digital and physical worlds, a key step in Chief Executive Officer Mark Zuckerberg's goal of one day offering a hands-free alternative to the smartphone. Photographer: David Paul Morris/Bloomberg via Getty Images Mark Zuckerberg, chief executive officer of Meta Platforms Inc., during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 25, 2024. Meta Platforms Inc. debuted its first pair of augmented reality glasses, devices that show a combined view of the digital and physical worlds, a key step in Chief Executive Officer Mark Zuckerberg's goal of one day offering a hands-free alternative to the smartphone. Photographer: David Paul Morris/Bloomberg via Getty Images

Menlo Ventures’ Deedy Das breaks down why AI talent is now like pro sports stars

The battle for top AI researchers is driving salaries into pro sports territory, says Deedy Das, principal at Menlo Ventures and former engineer at Google and Facebook.

The talent shortage is so severe, companies are shelling out huge paychecks just to snag the few experts who can deliver quick AI breakthroughs. Das explained on TechCrunch’s Equity podcast:

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“The reason people are being paid this much is because there’s a disparity between the prize to be made in a short amount of time and the amount of people who have the talent to get you to that prize,” Das explained. “As long as that gap remains, you pay up and you get the talent. […] Over time, there will be less prize in AI. I imagine a lot of that value will be captured by a few people, and there will be a lot more talent to fill the supply.”

Meta is spending billions not just on compute but on researchers to stay ahead. Startups’ acquisition offers and fat compensation packages are warping hiring and retention. Even multi-millionaire researchers jump ship chasing fresh opportunities.

VCs now worry over key-person risk as the AI talent market heats beyond traditional drivers like data or compute.

Listen to the full episode for the full breakdown, including what motivates top talent to move, Meta’s bets, and how investors think about the new AI world order.

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