OpenAI Ends New-Hire Vesting Restriction as Talent War Intensifies

OpenAI recently informed employees it would end the six-month “vesting cliff” for new hires, a move designed to encourage staff to take risks without fear of losing their first chunk of equity, Andrew Nusca reported for Fortune Tech.

Given the cutthroat competition for top AI talent, the balance of power has shifted to highly sought-after employees. (Photo: OpenAI Facebook)

The standard vesting period for most tech firms is 12 months; OpenAI had previously reduced it to six months in April. Rival xAI, founded by OpenAI co-founder Elon Musk, reportedly made a similar adjustment earlier this year.

With OpenAI, Anthropic, Google, Microsoft, Meta, and other companies competing for top AI talent, the balance of power has shifted to highly sought-after employees.

OpenAI plans to spend $6 billion on stock-based compensation in 2025, and nearly every major AI firm is projecting record compensation levels in 2026.