Please Note: We do not support (or attack) Elon Musk. This post is based on Musk being in the unique position of needing to retain Tesla AI engineers whilst OpenAI tries to steal them. He is well placed to make his claim of ‘Talent War for AI is the Craziest Talent War he has ever seen’.

Bloomberg -> Elon Musk Says He’s Boosting Tesla (TSLA) Pay Amid Talent War With OpenAI – Bloomberg

Elon Musk says that Tesla has over 200 excellent engineers in the Tesla AI/Autonomy Team.

Bloomberg and others are reporting that OpenAI is targeting these Engineers with MASSIVE compensation packages. Tesla has increased compensation (contingent on progress milestones).

DealAI’s Thoughts

Tesla is struggling. Tesla’s car deliveries missed analyst estimates by a considerable margin (last quarter). BYD is really ramping up and there is only so long Western Media can pretend BYD does not exist.

To make things worse, Elon Musk has brought his personal politics and turned Tesla into an interesting conundrum for most environment-loving people. They want to buy a Tesla but don’t support Elon Musk’s political beliefs or his boorish behavior.

OpenAI, on the other hand, is selling their AI vision/dream very well. Altman is talking about raising Trillions, building chip factories, and all kinds of ‘I’m the new Elon Musk who can sell anyone to anything’ stuff.

Musk attacked OpenAI and OpenAI is fighting back

It’s not a surprise at all, given

1. Musk attacking OpenAI’s move to becoming a Profit Centric company
2. Musk starting xAI

That OpenAI think it’s imperative to steal as many Tesla AI engineers and scientists as it can.

This is going to be very interesting to watch. OpenAI can offer crazy salaries and massive stock upside potential. Tesla cannot.

Musk’s new AI company, xAI, might. However, Musk has been reluctant to IPO any of his non-Tesla companies. He probably wants to avoid getting cellarboxed by Wall Street.

CellarBoxed – Short and Distort to Drive a company’s price into the cellar, thereby making it impossible for the company to raise capital.

OpenAI has the upper hand, for the forseeable future

OpenAI basically will be able to steal a lot of Tesla talent. Wonder how many Tesla AI engineers disagree with Elon Musk’s personal politics and are just waiting for the right offer.