OpenAI says this pause is as much a wellness intervention as it is a strategic play in a fierce competition for top-tier AI talent File photo/ assettype
Business

OpenAI announces week‑long shutdown to combat burnout and talent poaching

Meta’s aggressive hiring tactics—including rumored $100 million signing bonuses—have intensified pressure on OpenAI’s talent retention.

TNIE online desk

CHENNAI: OpenAI has initiated an unusual, company-wide shutdown for one full week beginning early July, citing severe employee burnout as the primary reason. According to several reports, teams have been averaging 80-hour workweeks, pushing leadership to mandate this break for staff wellbeing However, the timing of the shutdown has sparked speculation. Some experts argue that it serves a dual purpose -- not only as a wellness break but also as a strategic buffer in the escalating AI talent war with Meta.

Meta, led by Mark Zuckerberg, has launched an aggressive recruitment campaign targeting OpenAI researchers. Although there are varying reports, but signing bonuses have been described as reaching up to $100 million, with Meta successfully courting at least seven to eight OpenAI scientists.  

OpenAI’s Chief Research Officer, Mark Chen, sent a candid internal memo describing the exodus as feeling “like someone has broken into our home and stolen something.” He warned employees that Meta would likely step up outreach efforts during the shutdown, urging them not to make hasty, isolated decisions..

In response, OpenAI leadership—including Chen and CEO Sam Altman—have pledged comprehensive countermeasures. These include recalibrating compensation packages and exploring some 'creative recognition strategies'.

OpenAI is also personally reaching out to employees who have received external offers, and reinforcing company mission and values in communications.

Supportive messages from senior research managers to the broader engineering teams also emphasised caution against “ridiculous exploding offers” and encouraged staff to remain in dialogue with internal leadership.

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