OpenAI to end equity vesting period for employees: Report

OpenAI told staff that it was ending its policy requiring employees to work for at least six months at the company before their equity vests, the Wall Street Journal reported on Saturday, citing unnamed people familiar with the matter.

The move comes after the company shortened the vesting period for new hires to six months from the industry standard of 12 months in April, the report said, adding that Elon Musk’s xAI made a similar change in the summer.

OpenAI applications chief Fidji Simo told staff last week the change was meant to encourage risk-taking by new employees without having to worry about being let go before they get their first chunk of shares, the Wall Street Journal said.