OpenAI August 2025 Retention Bonus Structure
Bonus by Level (Technical Staff Only)
| OpenAI Level | Role Examples | Retention Bonus | PPU Grant (300B Price) | Current Value (500B) | Potential Upside | Vesting Schedule | Notes |
|---|---|---|---|---|---|---|---|
| L2-L3 | New Grad SWE, Junior SWE | $300k | $300k PPU grant | $500k current value | 67% instant gain | 2 years (quarterly) | Entry level positions |
| L4 | Senior SWE | $300k | $300k PPU grant | $500k current value | 67% instant gain | 2 years (quarterly) | Mid-level engineers |
| L5 | Staff SWE | $700k | $700k PPU grant | $1.17M current value | 67% instant gain | 2 years (quarterly) | Senior technical roles |
| L6+ | Principal SWE | $1.5M | $1.5M PPU grant | $2.5M current value | 67% instant gain | 2 years (quarterly) | Principal+ level |
| Research | Research Scientists | $1.5M+ | $1.5M+ PPU grant | $2.5M+ current value | 67% instant gain | 2 years (quarterly) | May be floor amount |
Key Program Details
Eligibility
- Technical staff only: Applied Engineers, Researchers, Software Engineers, Hardware Engineers
- Cutoff date: July 29, 2025 (must be employed on this date)
- Scope: ~1,000 employees (approximately 1/3 of company)
- Non-technical excluded: Marketing, HR, PR, other business functions
Payment Options
Employees can choose their bonus composition:
- All Cash
- All PPU (Profit Participation Units)
- 50/50 Mix (Cash + PPU)
PPU vs Cash Evaluation
PPU Advantages
- Valuation Discount: PPUs priced at 500B (67% instant upside)
- Tax Treatment: Long-term capital gains tax (~20-30%) vs ordinary income tax
- Future Upside: Additional benefit from company growth beyond $500B valuation
- Liquidity Events: Can participate in tender offers (historically every 1-2 years)
Cash Advantages
- Immediate Liquidity: No waiting for tender offers or company liquidity events
- Guaranteed Value: Not subject to company performance or valuation changes
- No Risk: Doesn’t depend on OpenAI’s future profitability or success
Risk Considerations
- PPU Risks: Company must be profitable for full value realization; limited liquidity
- PPU Cap: Reports suggest 10x cap on original PPU value
- 2-Year Sell Restriction: Even vested PPUs cannot be sold until 2+ years of tenure
Market Context
Total Investment
- Program Cost: >$1.5 billion across ~1,000 employees
- Competitive Response: Direct counter to Meta’s aggressive AI talent poaching
- Market Signal: Establishes new retention benchmark for AI industry
Comparison to Regular Compensation
| Level | Base Salary | Annual PPU Grant | Total Comp | Retention Bonus |
|---|---|---|---|---|
| L4-L5 | ~$300k | $500-640k | $800-940k | $300-700k |
| L6+ | ~$300k | $800k+ | $1.1M+ | $1.5M+ |
Note: Based on reports from Blind comments and industry sources. Amounts may vary by specific role and tenure.
Blind Comments
Its only staff and the amount isnt 1.5m. It scales based on your role and level. For most swe its lower than 1.5m. For research, 1.5m might be the floor (not sure, im not research). Senior swe is 300k. Staff is 700k. Senior staff swe i think is 1.5m
No. It vests quarterly over 2 years. Cutoff date is july 29th. If you were employeed on july 29th, you u got it.
Option to choose all cash, all ppu, or 50/50. You wouldnt be working here unless you believed in the ppu. Also they are giving ppu based on the 300b valuation price and not the unfinialized 500b valuation price. So i image most people are taking some or all ppu.