OpenAI - Competitive Intelligence BETA
Get insider information on how OpenAI structures their compensation.
⏰ Recent Updates
- OpenAI does not negotiate offers. They provide a high base salary and profit participation units in their offers. They do not typically provide sign-on bonuses as well.
- June 2023 - https://www.levels.fyi/blog/openai-compensation.html
- October 2023 - OpenAI offering $10M in compensation for researchers
- February 2024 - OpenAI is valued above $80B and will sell existing shares via a tender offer.
- May 2024 - OpenAI makes departing employees sign a confidentiality agreement which covers a general release of vested PPUs, arbitration, nonsolicitation, and nondisparagement, and broad 'noninterference' clauses. This means that, employees who do not follow the agreement could lose their PPUs, even if they are vested. This is an unprecedented type of agreement.
- June 2024 - OpenAI has changed its policies toward secondary share sales to allow current and former employees to participate equally in its annual tender offers
- February 2025 - L2 roles classified as Interns/New Grads
📄 Offer Overview
🧐 Compensation Philosophy
What does a typical offer look like? What forms of compensation? Anything particularly unique to this company? How does this company pay relative to rest of market? How is compensation determined and set? Does compensation differ by location?
Typical offer contains two components: Base Salary and Profit Participation Units. Base salary is generally standard across leveling and much higher relative to competitors. The profit participation units are a tricky part, but work like profit interest units. For more details on the profit participation units, see our blog post here.
Each level has a single fixed salary amount with one equity value assigned to each level. Every team member in their particular business group, at a given level, regardless of individual negotiations, receives the same compensation. Base salaries may differ slightly due to working location.
OpenAI has an internal compensation guideline they use to ensure pay equity among employees. Our data also seems to support this, with many employees reporting similar base salaries and PPUs. They also have an internal valuation tool, which they use to determine the value and growth of PPUs, so the specific numbers aren’t likely to end up in the public’s awareness.
We also don’t know how many PPUs are offered in a traditional offer, so we can’t say how they value each specific unit.
Their PPUs vest monthly after a 1 year cliff. 25% of the initial grant will vest on the first anniversary of employment and then the rest will vest monthly at a rate of 25%/year.
💵 Cash Compensation (Salary & Sign-on Bonus)
Do they give a sign-on bonus? If so, how much?
OpenAI provides sign-on bonuses in extremely rare cases (strong competing offers, strong interview, etc.) The sign-on bonus is paid in advance, but technically vests monthly over the first year and will not be fully earned until the first anniversary. If someone leaves prior to the anniversary, they will be required to pay back any unvested bonus.
📈 Equity Compensation (Valuation & Vesting Schedule)
How is value per share determined? What is the vesting schedule? Are signing bonuses offered and what is the range?
Equity type: Profit Participation Units
Vesting Schedule: 25/25/25/25 - Evenly over 4 years
There is a 1 year cliff until the equity vests, but employees cannot sell them until they hit 2 years tenure.
💳 Benefits & Non-monetary Compensation
What notable benefits does this company provide? Note: Also check Levels.fyi's public benefits page for this company.
In addition to standard medical, dental, mental health benefits, they offer the following:
- 401(k) plan with 4% matching
- Unlimited time off and 18+ company holidays per year
- Paid parental leave (20 weeks) and family-planning support
- Annual learning & development stipend ($1,500 per year)
⏳ Timeline
How much time does someone have to think about an offer before accepting? Are they strict about dates?
OpenAI seems very intentional about their hiring and will wait for the right candidate, offer deadlines can range from 1 week to 4 weeks.
🚨 Gotcha's
Anything to watch out for?
- OpenAI does not negotiate.
🤑 Negotiations
🔍 Process Overview
How are offers generated? How soon can someone hear back from the recruiter after negotiating? How many rounds of negotiations can be done? What happens after signing an offer?
OpenAI does not negotiate, even with competing offers, retention offers, etc. The best way to negotiate compensation is to prioritize leveling of the role.
Similar competitors, such as Anthropic and Scale AI, also do note negotiate their offers.
⚖️ Levers
What components can be negotiated? What levers can be adjusted (ex. salary can be increased)?
None, though there does seem to be some variance of base salaries depending on working location. There is one point of equity pay per level and role.
👥 Stakeholders
Who's involved in the process (ex. hiring manager, recruiter, etc.)? Who has the authority to make compensation decisions?
The recruiter and hiring manager are heavily involved in the process.
📎 Other Negotiables
Can PTO be negotiated? Can relocation be negotiated? Can any other benefits be negotiated?
No
💼 Negotiation for Employees
If I start and I get promoted, do I get to re-negotiate my package? Can I negotiate a raise? How hard is it to negotiate an increase after I join?
No
👩💻 Employee Compensation Policies
♻️ Refreshers
What happen after 4 years when my stocks are fully vested?
Unsure of refreshers for OpenAI. Considering their PPU model, it seems unlikely.
💲 Performance Bonuses
Are they given? How do they work? When are yearly bonuses paid out? When is the cut-off for someone to be eligible for a performance review?
There are no performance bonuses.