Will OpenAI change the the way startup equity works for everyone?
Unlikely. But this move is still pretty interesting.
Eliminating the vesting cliff on their employee equity means that if you join OAI tomorrow, you start getting real equity from day 1. No waiting around for a year for the first 25% of your equity package to become real.
Why would they make such a drastic move? The 1-year cliff has been a retention mechanism for decades among tech startups.
They face immense competition for research talent, usually from the most well-capitalized firms in the world so they must think...
Missing out on top talent for any reason is a bigger risk to the business than having someone walk away after 6 months with a considerable sum of money.
The equity they offer is way more liquid than the equity at your standard startups (or even late-stage scaleup).
Pretty sure that most startups will not follow suit here, but it highlights the massive gap between in-demand AI talent and everyone else these days.
The average comp package for a startup employee hired in 2025 is actually 50% lower than it was in 2022 (and not because of startup valuations - we're talking literal share amounts here).
But the compensation for AI/ML engineers is up 30%+ in the last 12 months alone.
Haves vs have-nots. In hiring, in fundraising, in every part of the venture market.
Maybe 2026 is the year where we see even early-stage startups experimenting with new versions of the standard 4-year vest with a 1-year cliff model.
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
