Tech Desk 
Aug 06, 2025
Elon Musk's artificial intelligence startup, xAI, is reportedly luring top engineers from Meta without providing "insane" initial compensation packages, which is a major development in the tech sector.
Musk claimed on the social media site X that xAI's merit-based system and growth potential are important reasons for luring talent away from Meta.
According to reports, Meta is enticing engineers from rivals like OpenAI and Anthropic with generous compensation packages as part of a growing talent war in Silicon Valley.
It has been reported that Meta's offers, which can total up to $100 million, include stock options that fully vest after a year.
Musk highlighted that xAI's market capitalisation growth potential is significantly greater than Meta's and that the company's meritocratic culture enables engineers to receive significant compensation for exceptional work.
Musk said: "Do something great, and your compensation can shift substantially higher."
It's interesting to note that some engineers have reportedly declined Meta's generous offers in favour of organisational agility and mission-driven work.
The AI talent war is probably going to keep having an impact on the sector, and industry watchers are impressed by xAI's quick adoption of new tools.
Ten new tools were released by xAI in its first year, including chatbots, a mobile app, and an image generator.
Innovation and expansion in the AI industry are anticipated to be fuelled by the competition for top talent.
