Defections from $12B Thinking Machines shows struggle for AI talent (fortune.com)

In a significant shake-up within the AI industry, three key members of the founding team at Thinking Machines Lab, a startup led by former OpenAI CTO Mira Murati, are departing to rejoin OpenAI. This move, announced by OpenAI CEO Fidji Simo, highlights ongoing talent wars in Silicon Valley, especially as startups like Thinking Machines—despite raising a record $2 billion and achieving a $12 billion valuation—struggle to retain top researchers. The circumstances surrounding the departures have raised eyebrows, particularly after reports indicated that the firing of cofounder Brett Zoph was tied to “unethical conduct,” although details remain unclear. The implications of this turnover are profound for the AI/ML community, as they underscore the challenges faced by new AI labs in competing for talent against established giants like OpenAI and Meta, which can offer lucrative compensation packages and advanced computing resources. Moreover, the lack of clear product direction—a concern voiced by employees—further complicates Thinking Machines' position in a market that favors swift innovation and strong business models. As these experienced researchers return to OpenAI, it raises questions about the viability of newer labs to not only attract talent but also to translate research into compelling products effectively.