Musk Boosts Tesla Salaries After xAI Hire

  • Editor
  • April 4, 2024

In a surprising move within the tech industry, xAI, a startup company founded by Elon Musk, has successfully recruited an engineer from Tesla, the billionaire’s renowned electric vehicle company. This development comes just a year after Musk announced the launch of xAI, an artificial intelligence firm poised to make significant strides in the industry.

According to reports from Electrek, the transfer of Tesla’s talent to xAI has stirred controversy. Musk himself has previously described Tesla as an AI company, highlighting the significance of such a transition. The move is seen as “poaching,” given the direct recruitment of an employee from a company operating in a closely related sector.

This strategic hire by xAI underscores the intensifying competition for talent in the Artificial Intelligence and tech industry. It reflects a broader trend of AI companies vying for skilled engineers and specialists who can drive innovation and technological advancement.
Elon Musk, Tesla’s CEO, announced on Wednesday that the company is increasing the pay packages for its AI engineering team members. This salary increase, according to Musk, is a direct response to OpenAI’s efforts to poach Tesla’s engineers.

“They have been aggressively recruiting Tesla engineers with massive compensation offers and have unfortunately been successful in a few cases,” Musk said of OpenAI’s hiring efforts in an X post on Wednesday.

Musk’s comments came after a report by The Information, released the same day, revealed that Ethan Knight, a machine-learning scientist at Tesla, is transitioning to Musk’s AI venture, xAI.

“Ethan was going to join OpenAI, so it was either xAI or them,” Musk wrote on

Tesla and xAI’s case highlights the growing intersection of the automotive and AI sectors. With both industries increasingly reliant on cutting-edge technology and innovation, the battle for skilled professionals is set to intensify. Musk’s dual role in leading companies at the forefront of these sectors places him in a unique position to shape the future of both the electric vehicle market and the broader AI landscape.

As the industry watches these developments unfold, the implications for talent mobility and innovation within the tech ecosystem remain a topic of keen interest. With Musk’s proactive measures to retain talent, the tech mogul demonstrates a clear recognition of the critical importance of human capital in driving forward the ambitions of both Tesla and the emerging AI industry. If you’re interested in more AI news, visit

Was this article helpful?
Generic placeholder image

Dave Andre


Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *