Artificial intelligence (AI) startups boom in Europe is heating up the competition for technical talent, which is driving established players like Google’s DeepMind to navigate between substantial wage/salaries or risk losing top talent to emerging competitions.
OpenAI’s ChatGPT success has energized investors, spiraling a surge of funding into promising AI startups and heightening pressure on tech firms to attract and retain talent across the region.
DeepMind which was founded in 2010 and acquired by Google in 2014, the London-based firm faces a burgeoning landscape of well-funded competitors surrounding around its domain, backed with the stream of departing employees launching their ventures.
Some notable departures include; co-founder Mustafa Suleyman and research scientist Arthur Mensch, who founded multi-billion-dollar ventures in California post-DeepMind.
To reduce the talent outflow, DeepMind is said to have granted restricted stock access to senior researchers earlier this year. Although with the acknowledgment of the competitive landscape, a DeepMind spokesperson confirmed the ecosystem to be competitive, therefore, adding that he company “continues to do well in attracting and nurturing talent”.
According to Avery Fairbank, an Executive research firm, it sighted the “exponential increase” in the pay for C-suite staff within the U.K last year. Managing director, Charlie Fairbank also said, “The entrance of foreign AI giants such as Anthropic and Cohere into London’s market will further escalate the competition for AI talent.”
Phil Blunsom and Sebastian Ruder, former DeepMind researchers, joined Cohere, which underlines the allure of startups fostering innovation with leading industry minds. Amid DeepMind challenge of formidable competition for talent, OpenOcean a Venture Capital firm spots the gradual accumulative gap between industry frontrunners and emerging startups, all vying for a limited pool of AI expertise.
The rapid growth of startups like Mistral and Inflection AI, founded by former DeepMind personnel, underscores the evolving dynamics in the AI talent market. In response to the talent war, companies like OpenAI and ElevenLabs are offering enticing incentives, including stock options, generous salaries, and remote work flexibility, to attract and retain talent.
This trend reflects a broader shift where startups seek to leverage Big Tech talent’s expertise while offering greater influence and a stake in the company’s success.