AMD Isn't Keeping Up With Meta Platforms' $100 Million Salaries For AI Talent, And The Reason Is Brilliant

Advanced Micro Devices AMD pays its AI experts well, but it's not following Meta Platforms' META footsteps. AMD CEO Lisa Su recently said that the AI chipmaker will not offer $100 million packages to compete with Meta Platforms as they recruit AI talent.

Su mentioned that money is "not necessarily the most important thing when you're attracting talent" in an interview with Wired. While it might sound like AMD is taking the cheap route, the company pays its employees well, and Su's expanded explanation reveals key business lessons.

It's Not About One Person

The most successful companies get more out of the whole than the sum of their parts. A talented AI professional will help a company, but it takes many people to create technological change. Giving one AI talent a $100 million package can hurt the work culture Su has spent years cultivating at AMD.

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It can cause other workers to feel undercut since they have been producing tremendous work, but didn't receive $100 million. Su still believes in competitive offers and told Wired that AMD's staff isn't underpaid. You have to pay top dollar to get top talent. However, the contracts can get so lucrative that money doesn't matter as much. Most people can live lavishly on $5 million per year, and at some point, the focus shifts toward how much of a technological impact every AI talent wants to have on the world.

Su touted in that interview how AMD is at the forefront of change and that the chipmaker's work is having a tangible and substantial impact on the world. Offering a big pay package to one employee acknowledges a superstar while potentially belittling the people who have worked hard for many years but don't get paid anywhere close to that level.

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Mission Vs. Paycheck

Su doesn't just want to hire people who can get the job done. She wants people who are more invested in AMD's mission than they are in a paycheck. Meta Platforms' nine-figure contracts are hard for anyone to match.

While Meta Platforms will get talented AI workers, those individuals may be only accepting those offers since they are the most lucrative. The paycheck may be a bigger driving force for some these hiring decisions than someone's desire to change the world with artificial intelligence.

AMD workers still get paid well, but by not being the top bidder, the company ensures it's working with employees who are aligned with the chipmaker’s mission. An employee who isn't aligned with the company's mission may drag the team down, especially if that employee is getting paid far more than everyone else.

No Favorites

Meta Platforms is comfortable doling out money to the top AI talent, but it comes at a time when the company wants to cut 5% of its workforce. The company has ruthlessly focused on efficiency, which has rewarded shareholders. However, giving out billion-dollar contracts to some workers while emphasizing how expendable other people are can create a bad work culture.

You can bring the best talent into a workplace, but if the culture is bad, it can thwart attempts at innovation. That's part of the reason why Su doesn't want to play favorites at AMD, and that includes balking at the idea of $100 million salaries.

The lack of favorites also ensures that all employees go through the same, fair process as they climb AMD's corporate ladder and advance to new positions. While it might sound like AMD is playing cheap as Meta Platforms burns through money like no tomorrow, it's actually a smart move that can preserve AMD's healthy work culture.

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