Meta tried to buy Ilya Sutskever’s $32 billion AI startup, but is now planning to hire its CEO

Authors: Kate Rooney

Publisher:

CNBC

Published: 6/20/2025

Language:English

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David

Welcome everyone to 'Tech Titans,' the show that unpacks the biggest stories in the tech world. I’m your host, David, and today is June 26, 2025.

Ema

And I'm Ema, your expert guest for today. It’s a pleasure to be here, David!

David

Today, we're diving headfirst into the AI talent war. We're talking hundred-million-dollar signing bonuses and multi-billion dollar deals just to hire a few key people. We'll explore why this is happening and what it means for the future.

David

So Ema, to get us started, the numbers being thrown around in this talent war are just astronomical. What's the one story that really captures the sheer scale of this phenomenon for you?

Ema

It has to be the recent news about Meta. The input text we saw, and what's been buzzing around, is that they've offered signing bonuses as high as one hundred million dollars to poach top researchers from their rival, OpenAI.

David

A hundred million dollars. Let that sink in. That's not a salary or an equity package, that's just the bonus for signing on the dotted line. It’s more than most companies are worth.

Ema

Exactly! It’s like a draft for a major sports league, but the contracts are bigger than a star quarterback's, and the players are AI scientists. OpenAI's CEO, Sam Altman, even confirmed Meta was making these 'giant offers' to his staff.

David

It really reframes what a 'competitive offer' means. But it's not just about individual hires, is it? Meta is also making enormous investments to secure talent.

Ema

Right. Just last week, they pumped a staggering 14.3 billion dollars into Scale AI. And while they got a 49% stake, the real prize was hiring its founder, Alexandr Wang, and a handful of his top engineers. They essentially paid billions per person.

David

So this is a strategy we call 'acqui-hiring,' but on a scale we've never seen before. You're not just buying a product; you're buying the brains behind the product.

Ema

Um, yes. It tells you that the most valuable asset in the AI race isn't the code, the algorithms, or even the massive data centers. It's the people. There are perhaps fewer than a thousand individuals on the planet who can build these foundational models from scratch.

David

It paints a picture of a very exclusive, very high-stakes club. And Mark Zuckerberg is reportedly at the center of it, making personal appeals.

Ema

Absolutely. This isn't some delegated HR task. The background info shows Zuckerberg is personally emailing and calling these AI stars. It’s a full-blown gold rush, and the gold is human intellect.

David

This feels like it escalated incredibly quickly. This level of intensity wasn't here, say, five years ago. Ema, can you give us some background on how we got to this point?

Ema

Well, the embers of this war have been glowing for a while, since the mid-2010s really. But the launch of generative AI tools like ChatGPT just poured jet fuel on the fire. Suddenly, every company, every person, saw that AI wasn't just a research paper, but a world-changing product.

David

And that created an immediate, frantic race for dominance. A race where the jockeys are these elite researchers. Let's talk about the key players in our main story. The article centers around a man named Ilya Sutskever. Who is he?

Ema

Ilya Sutskever is a true legend in the AI community. He was a co-founder and the chief scientist at OpenAI, and a student of Geoffrey Hinton, one of the 'Godfathers of AI.' He was instrumental in many of their key breakthroughs, like AlexNet, which revolutionized computer vision.

David

So, a real pioneer. And he recently left OpenAI, a company he helped build into a powerhouse, to start something new. What's the story behind his startup, Safe Superintelligence?

Ema

Right. He left OpenAI just last year with a singular, incredibly ambitious mission: to create a 'safe superintelligence,' or SSI. His goal isn't just to build AI that's smarter than humans, but to ensure it remains controllable and beneficial for humanity. It’s a safety-first approach.

David

A very noble, and very challenging, goal. And Meta, specifically Zuckerberg, wanted a piece of that. The article says they tried to acquire the entire company?

Ema

They did. SSI was reportedly valued at a mind-boggling 32 billion dollars in a funding round, and Meta tried to buy it outright. But Sutskever rebuffed the offer. He also turned down a personal job offer from them. He has his own vision and clearly didn't want it diluted by Meta.

David

That takes incredible conviction, to turn down that kind of money and power. But Zuckerberg is known for his persistence. What was his Plan B after being rejected?

Ema

Exactly. His Plan B was classic Silicon Valley strategy: if you can't buy the company or hire the founder, you hire their top lieutenants. He immediately started negotiating with SSI's CEO, Daniel Gross, and his close partner, Nat Friedman.

David

And who are Gross and Friedman? They sound like they're heavy-hitters in their own right, not just supporting characters.

Ema

Oh, they are. Daniel Gross is a well-known entrepreneur and investor. He founded a search engine called Cue, which he sold to Apple. He then led machine learning and Siri development there. Nat Friedman was the CEO of GitHub after Microsoft acquired it for 7.5 billion dollars.

David

So we have a former Apple AI lead and the former CEO of the world's largest code repository. That's a huge talent acquisition for Meta.

Ema

A massive win. And together, Gross and Friedman run a very influential venture capital firm called NFDG, which has backed huge successes like Coinbase and Perplexity. As part of the deal, Meta is also getting a stake in their firm. So they get the people *and* a window into the next generation of startups.

David

It's a multi-layered strategic move. But this isn't happening in a vacuum. The article makes it clear that all the tech giants are engaged in this kind of activity.

Ema

Um, not at all. It’s an industry-wide arms race. Look at Microsoft. They effectively acquired the core talent from the AI startup Inflection, paying 650 million dollars to bring on its co-founder, Mustafa Suleyman, and his team.

David

And Google did something similar with Character.AI, right?

Ema

Right. They recruited the founders of Character.AI back to Google in what was described as a 'multibillion-dollar deal.' Even OpenAI, the company Meta is poaching from, is playing the game. They reportedly paid around 6.5 billion to hire famed iPhone designer Jony Ive and acquire his new device startup.

David

It seems like every major player is trying to assemble their own 'Avengers' team of AI talent, and they're willing to pay any price to do it. It’s a fascinating, and perhaps worrying, concentration of power.

David

This brings us to the core conflict here. It's clearly not just about money. There seem to be fundamentally different philosophies and visions for the future of AI competing against each other. How would you frame this conflict, Ema?

Ema

I think it's a clash of urgency versus caution. On one side, you have Meta. Sam Altman was quoted saying, 'I've heard that Meta thinks of us as their biggest competitor,' and that 'their current AI efforts have not worked as well as they have hoped.'

David

So Meta feels like they are behind, and their strategy is an aggressive, all-out push to catch up and dominate. It's a brute-force approach: spend whatever it takes, hire whoever you need, and win the race.

Ema

Exactly. It's a 'win at all costs' mentality. On the other side, you have the philosophy embodied by Ilya Sutskever. His entire company is named 'Safe Superintelligence.' For him, and others in his camp, the primary mission isn't just winning the race, but ensuring the race doesn't lead us off a cliff.

David

It's the classic Silicon Valley dilemma: 'move fast and break things' versus 'proceed with caution and get it right.' And this tension exists even within companies, doesn't it? Sutskever was part of the OpenAI board that briefly ousted Sam Altman.

Ema

Right! That entire public drama was reportedly rooted in this exact conflict. A faction focused on accelerating development clashed with a faction, including Sutskever, that was deeply concerned about safety and the existential risks of moving too quickly. It’s the fundamental schism in the AI world today.

David

So when Meta tries to lure an OpenAI employee with a huge bonus, it's not just a business transaction. It's an attempt to pull someone from one ideological camp to another. Though Altman claims his top people are staying put.

Ema

He does. He boldly stated, 'none of our best people have decided to take them up on that.' It suggests that for this elite group, the mission, the culture, and the belief in the company's approach can be more powerful than a massive paycheck. It's a testament to the power of a shared vision.

David

There's another layer to this conflict as well: the debate between open-source and closed-source AI. How does that factor into a researcher's decision?

Ema

That's a huge factor. Meta, with its Llama models, has positioned itself as a champion of open-sourcing its research. For scientists coming from academia, the ability to publish and share their work is a massive incentive. It's part of their identity.

David

Whereas OpenAI, despite its name, has become progressively more closed and secretive about its cutting-edge models. So the choice for a researcher is complex.

Ema

Exactly. Do you go to Meta for a giant salary and the freedom to publish, or do you stay at a place like OpenAI or join SSI because you believe more deeply in their focused, safety-first mission, even if it's more secretive? There's no easy answer.

David

Let's pivot to the ripple effects of all this. What is the impact of this high-stakes talent war on the broader technology landscape?

Ema

The most immediate impact is on smaller startups. It's creating a 'brain drain' of immense proportions. If you're a promising AI startup, how can you possibly hope to retain your best engineer when Meta or Google can offer them a life-changing amount of money overnight?

David

So it could actually stifle innovation at the grassroots level. The next revolutionary idea might get its team poached—or get acquired just for its talent—before it ever has a chance to mature and challenge the incumbents.

Ema

Precisely. And this extends to academia as well. Universities simply cannot compete with private sector salaries. We're seeing top professors and even their entire PhD labs moving to companies like Meta and Google. This could seriously harm the long-term pipeline of new talent and fundamental, non-commercial research.

David

That's a critical point. What about the impact on the technology itself? Does concentrating the world's top AI minds in just a few massive corporations change the direction of AI development?

Ema

It absolutely does. When a handful of companies control the talent, they set the research agenda. Their commercial priorities—whether it's improving ad targeting, social media engagement, or selling cloud services—will inevitably steer the course of AI, potentially neglecting other vital areas like healthcare or climate science.

David

And there's a flip side to this coin. We hear about these incredible salaries for the top 0.1%, but what does this war mean for the average tech worker or new graduate?

Ema

That's the paradox. While the compensation for elite talent is skyrocketing, the background data shows that hiring for junior-level roles in big tech is actually declining. Companies are pouring so many resources into this top-tier talent war that they're hiring fewer people at the entry level.

David

Looking to the future, then, where does this all go? Is this level of spending and competition sustainable in the long run?

Ema

That's the multi-trillion-dollar question! Right now, the prevailing belief in Silicon Valley is that achieving Artificial General Intelligence, or AGI, is a prize so monumental that almost any investment is justifiable. It's an arms race, and no one wants to be the first to disarm.

David

So in the short term, we can expect more of the same—more aggressive hiring, more massive deals. What are some potential ways this could eventually stabilize?

Ema

Well, one long-term possibility is that the talent pool simply expands. As AI education becomes more widespread and sophisticated, the supply of talent might begin to catch up with the immense demand, which would naturally normalize compensation. But for this elite level of talent, that could take many years.

David

What trends should our listeners be watching for as this story continues to unfold?

Ema

I'd watch for more creative 'acqui-hiring' deals, like the ones we've discussed. It won't just be about salary; it'll be about acquiring entire teams, strategic partnerships, and portfolios all in one go. And definitely keep an eye on the 'safety versus speed' debate. It will remain the central ethical battleground of AI.

David

Finally, for our listeners, what's the key lesson or takeaway from this whole saga?

Ema

I think it's a powerful reminder that even in this age of unbelievable technology, the human element—the expertise, the vision, the creativity—is still the most valuable resource of all. The entire future of this revolution rests on the shoulders of a surprisingly small number of people.

David

That's a perfect note to end on. This AI talent war is so much more than just big numbers; it’s a high-stakes battle for the future of technology itself, fought over conflicting philosophies and visions.

Ema

Absolutely. It’s a captivating story, and I have a feeling it's far from over.

David

A huge thank you to our brilliant guest, Ema, for breaking it all down for us today. And to our listeners, thank you for tuning into 'Tech Titans.' We'll be back next week. Until then, stay curious!

## Comprehensive News Summary: Meta's Aggressive AI Talent Acquisition and the Escalating AI Talent War This summary provides a comprehensive overview of Meta's recent strategic moves in the artificial intelligence sector, focusing on its aggressive talent acquisition efforts and the escalating AI talent war. --- ### News Metadata * **News Title/Type:** Meta tried to buy Ilya Sutskever’s $32 billion AI startup, but is now planning to hire its CEO / Startup * **Report Provider/Author:** CNBC / Kate Rooney * **Date/Time Period Covered:** Published June 19, 2025 (content reflects events leading up to this date, including "last week" and "earlier this year" in 2025, and "a year ago" referring to Safe Superintelligence's launch around 2024). * **Publisher URL:** https://www.cnbc.com * **News URL:** https://www.cnbc.com/2025/06/19/meta-tried-to-buy-safe-superintelligence-hired-ceo-daniel-gross.html --- ### Key Findings and Conclusions Meta, led by CEO Mark Zuckerberg, is engaged in an aggressive, multi-billion-dollar hiring spree and strategic investments to bolster its artificial intelligence capabilities, particularly in the race to develop powerful large language models (LLMs) and artificial general intelligence (AGI). This intense pursuit of top AI talent has significantly escalated the ongoing "AI talent war" among tech giants. ### Meta's Strategic Moves and Financial Commitments 1. **Attempted Acquisition of Safe Superintelligence & Subsequent Hiring:** * Earlier in 2025, Meta attempted to acquire **Safe Superintelligence**, a startup founded by Ilya Sutskever (who recently left OpenAI). * The startup was reportedly valued at **$32 billion** in an April fundraising round. * Sutskever, however, rebuffed Meta's acquisition efforts and their attempt to hire him directly. * Following this, Zuckerberg began negotiating with **Daniel Gross**, CEO of Safe Superintelligence, and **Nat Friedman**, former GitHub CEO. * Both Gross and Friedman are now joining Meta, working under Alexandr Wang. Meta will also acquire a stake in their venture capital firm, **NFDG**, which has backed companies like Coinbase, Figma, and Perplexity. 2. **Significant Investment in Scale AI:** * Last week, Meta agreed to invest **$14.3 billion** into the artificial intelligence startup **Scale AI**. * This investment secured a **49% stake** in Scale AI for Meta. * Crucially, the deal also brought Scale AI founder **Alexandr Wang** and several other top engineers to Meta. 3. **Aggressive Recruitment Tactics:** * Meta is actively trying to poach employees from competitors, notably OpenAI. * OpenAI CEO Sam Altman stated that Meta has offered signing bonuses as high as **$100 million**, along with even larger annual compensation packages, to lure OpenAI talent. Altman noted that "none of our best people have decided to take them up on that." ### The Escalating AI Talent War The article highlights the fierce competition for AI talent among major tech companies: * **Meta's Perspective:** Sam Altman mentioned, "I've heard that Meta thinks of us as their biggest competitor." He also commented on Meta's AI efforts, stating, "Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things." * **Competitors' Actions:** * **OpenAI:** Paid approximately **$6.5 billion** to hire iPhone designer Jony Ive and acquire his nascent devices startup, io. * **Google:** Recruited the founders of AI startup **Character.AI** back to the company in a "multibillion-dollar deal" last year. * **Microsoft:** Acquired DeepMind co-founder **Mustafa Suleyman** and talent from Inflection AI in a **$650 million** purchase. ### Key Individuals and Their Backgrounds * **Daniel Gross:** Longtime entrepreneur and AI investor. Founded Cue (acquired by Apple in 2013), was a top executive at Apple leading machine learning and Siri development, and a partner at Y Combinator before co-founding Safe Superintelligence and NFDG. * **Nat Friedman:** Co-founded two startups before becoming CEO of GitHub after its acquisition by Microsoft in 2018. Co-runs NFDG with Daniel Gross. * **Alexandr Wang:** Founder of Scale AI. * **Ilya Sutskever:** Founder of Safe Superintelligence, previously a key figure at OpenAI. * **Jony Ive:** Renowned iPhone designer, founder of io. * **Mustafa Suleyman:** Co-founder of DeepMind and Inflection AI. ### Outlook Meta's spokesperson stated that the company "will share more about our superintelligence effort and the great people joining this team in the coming weeks," indicating further announcements are expected regarding their intensified AI push. The aggressive tactics underscore the high stakes and significant financial commitments involved in the race to achieve advanced AI capabilities.

Read original at CNBC →

At the Meta Connect developer conference, Mark Zuckerberg, head of the Facebook group Meta, shows the prototype of computer glasses that can display digital objects in transparent lenses.Andrej Sokolow | Picture Alliance | Getty ImagesWhen Meta CEO Mark Zuckerberg poached Scale AI founder Alexandr Wang last week as part of a $14.

3 billion investment in the artificial intelligence startup, he was apparently just getting started.Zuckerberg's multibillion-dollar AI hiring spree has now turned to Daniel Gross, the CEO of Ilya Sutskever's startup Safe Superintelligence, and former GitHub CEO Nat Friedman, according to sources with knowledge of the matter.

It's not how Zuckerberg planned for a deal to go down.Earlier this year, sources said, Meta tried to acquire Safe Superintelligence, which was reportedly valued at $32 billion in a fundraising round in April. Sutskever, who just launched the startup a year ago, shortly after leaving OpenAI, rebuffed Meta's efforts, as well as the company's attempt to hire him, said the sources, who asked not to be named because the information is confidential.

Soon after those talks ended, Zuckerberg started negotiating with Gross, the sources said. In addition to his role at Safe Superintelligence, Gross runs a venture capital firm with Friedman called NFDG, their combined initials.Both men are joining Meta as part of the transaction, and will work on products under Wang, one source said.

Meta, meanwhile, will get a stake in NFDG, according to multiple sources.The Information was first to report on Meta's plans to hire Gross and Friedman.Gross, Friedman and Sutskever didn't respond to CNBC's requests for comment.A Meta spokesperson said the company "will share more about our superintelligence effort and the great people joining this team in the coming weeks."

Zuckerberg's aggressive hiring tactics escalate an AI talent war that's reached new heights of late. Meta, Google and OpenAI, along with a host of other big companies and high-valued startups, are racing to develop the most powerful large language models, and pushing towards artificial general intelligence (AGI), or AI that's considered equal to or greater than human intelligence.

Last week, Meta agreed to pump $14.3 billion into Scale AI to bring on Wang and a few other top engineers while getting a 49% stake in the startup.OpenAI CEO Sam Altman said on the latest episode of the "Uncapped" podcast, which is hosted by his brother, that Meta has tried to lure OpenAI employees by offering signing bonuses as high as $100 million, with even larger annual compensation packages.

Altman said "none of our best people have decided to take them up on that.""I've heard that Meta thinks of us as their biggest competitor," Altman said on the podcast. "Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things."

Meta didn't respond to a request for comment on Altman's remarks.OpenAI, for its part, has gone to similar lengths, paying about $6.5 billion to hire iPhone designer Jony Ive and to acquire his nascent devices startup io.Elsewhere, the founders of AI startup Character.AI were recruited back to Google last year in a multibillion-dollar deal, while DeepMind co-founder Mustafa Suleyman was brought on by Microsoft in a $650 million purchase of talent from Inflection AI.

In Gross, Zuckerberg is getting a longtime entrepreneur and AI investor. Gross founded the search engine Cue, which was acquired by Apple in 2013. He was a top executive at Apple and helped lead machine learning efforts and the development of Siri. He was later a partner at startup accelerator Y Combinator, before co‑founding Safe Superintelligence alongside Sutskever.

Friedman co-founded two startups before becoming the CEO of GitHub following Microsoft's acquisition of the code-sharing platform in 2018.NFDG has backed Coinbase, Figma, CoreWeave, Perplexity and Character.ai over the years, according to Pitchbook. It's unclear what happens to its investment portfolio in a Meta deal, a source said.

WATCH: Zuckerberg, Altman feud for top AI talent

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