The growing field of artificial intelligence (AI) has sparked a talent war in Europe, as startups vie with tech giants for the best minds in the industry. Companies like Google DeepMind, once considered the leader in AI, are facing fierce competition from a new wave of well-funded startups. OpenAI’s recent success with ChatGPT has attracted significant investment, encouraging foreign AI firms like Cohere, Anthropic, and OpenAI to establish offices in Europe. With this influx of startups, tech companies are under pressure to attract and retain talent in the region.
DeepMind, founded in 2010 and acquired by Google in 2014, has seen many of its employees leave to launch their own ventures. Mustafa Suleyman, the co-founder, started Inflection AI with LinkedIn billionaire Reid Hoffman, and Arthur Mensch, a research scientist, is now the CEO of Mistral AI. Both companies have received multi-billion dollar valuations in a short time. To discourage further departures, DeepMind has reportedly given a select group of senior researchers access to restricted stock worth millions of dollars.
The competition for AI talent has led to a significant increase in executive salaries at AI companies in Britain. Charlie Fairbank, the managing director of executive search firm Avery Fairbank, has seen pay packets for C-suite staff jump by £50,000 to £100,000 over the last year. Cohere, for example, hired Phil Blunsom, a lead researcher at DeepMind, as its chief scientist, while Sebastian Ruder also joined from DeepMind. Ruder remarked that finding a company with leading experts in the field was rare and an opportunity that he couldn’t pass up.
DeepMind’s position as the leader in AI is no longer unchallenged. According to Ekaterina Almasque, a general partner at venture capital firm OpenOcean, all these companies are now competing for the same pool of talent, and the shortage of AI skills means that pool is shrinking. OpenAI has also entered the scene, opening offices in London and Dublin, with plans for further expansion. Cohere, which designs chatbots and other tools, has established its UK office and aims to double its headcount in London.
The talent war has given prospective employees more leverage in negotiations. London-based company ElevenLabs, specializing in AI audio, is offering stock options, generous salaries, and fully remote working to attract new hires. Similarly, Paris-based startup Bioptimus, founded by former DeepMind staff, raised $35 million in February. Startups are trying to entice talent from tech giants like Google by offering them a greater say in the company’s direction, providing a unique opportunity to stay true to their passion and have a stake in the company’s success.
The AI talent war in Europe showcases the increasing demand for skilled individuals in this rapidly developing field. Startups are challenging tech giants, and the competition for talent is driving up salaries and benefits. As these companies continue to innovate, there is no doubt that the European AI landscape will continue to evolve, bringing new opportunities and challenges for both established players and emerging startups.
“The entrance of foreign AI giants such as Anthropic and Cohere into London’s market will further escalate the competition for AI talent." - Charlie Fairbank, Managing Director, Avery Fairbank.
“At a smaller startup, you have a unique opportunity to remain true to the work you are passionate about and have a stake in the success of the company." - Thomas Clozel, Early Investor, Bioptimus.
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