OpenAI announces $Million+ retention bonuses for 1,000 employees
OpenAI has been struggling to retain its top talent in recent months, with big tech companies actively luring away its A-class researchers and engineers.
In an attempt to retain its top talent amid intensifying competition in the AI industry, OpenAI has unveiled a major “one-time retention bonus” program.
The program was announced a day prior to OpenAI rolling out a new and upgraded version of its top conversational AI i.e. ChatGPT-5.
According to an internal memo shared in media reports, the retention bonus will go to around 1,000 employees in the tech team behind GPT, which is roughly one-third of OpenAI’s total workforce of 7,077 as of 2025.
The memo states that the bonus will be paid out based on rank and experience. OpenAI’s most sought-after researchers are reportedly set to receive up to $5 million in bonuses, while software engineers will get bonuses in the hundreds of thousands of dollars.
The bonuses will be disbursed every quarter for the next two years, and employees will have the option to take either cash, stock, or a mix of both, the memo stated.
In a message to employees, CEO Sam Altman said, “As we mentioned a few weeks ago, we have been looking at comp for our technical teams given the movement in the market… we very much intend to keep increasing comp as we keep doing better and better as a company… But we wanted to be transparent about this one since it's a new thing for us.”
The retention bonus rollout for OpenAI’s top talent coincides with the GPT-5 launch, making it the best time to reward the talent behind the industry’s most popular AI tool.
Rolling out the new ChatGPT version, the company noted that, “GPT-5 is a unified system with a smart, efficient model that answers most questions, a deeper reasoning model (GPT-5 thinking) for harder problems, and a real-time router that quickly decides which to use based on conversation type, complexity, tool needs, and your explicit intent.”
CEO Altman remarked, “GPT-5 is the first time that it really feels like talking to an expert in any topic, like a PhD-level expert.”
This new version is available to all users free of cost, while GPT Plus will remain available to subscribers, offering higher usage limits, and Pro subscribers will gain access to GPT-5 Pro, which provides extended reasoning capabilities for advanced tasks.
OpenAI claims GPT-5 delivers more accurate, context-aware responses and faster turnaround times than its predecessors, thanks to improvements in both model design and infrastructure scaling.
The tech industry is facing intense competition for AI talent, with big tech companies, including Meta, led by CEO Mark Zuckerberg, and xAI’s Elon Musk, aggressively hiring top ML researchers and engineers capable of advancing generative AI models.
More than 10 top researchers from OpenAI were recently lured away by Meta with million-dollar joining bonuses, after which OpenAI gave its entire team a weeklong wellness break.
The retention bonus is OpenAI’s latest measure, signaling both confidence in its roadmap and a clear intent to retain its key people while safeguarding the talent pipeline and innovation behind its flagship AI products.