Could offering employees liquidity help your company win the AI talent war?

The demand for artificial intelligence (AI) talent has never been higher. As companies across industries integrate AI to enhance productivity, improve decision-making and drive innovation, the battle for top AI professionals has reached an intense level. Startups and established enterprises alike are competing fiercely to attract and retain machine learning engineers, data scientists, AI researchers and other AI professionals. But with the stakes so high, salary increases, restricted stock unit (RSU) grants and stock options alone might no longer be enough to secure the best minds in the field.

One potential way for private companies to better compete for AI talent can be offering liquidity opportunities. As employees look at peers at other AI-focused tech companies that have gone public or conduct regular tender offers, a lack of liquidity could make it hard to recruit and retain top AI talent. Smaller private companies may not have the resources to match base salaries of larger competitors, such as public tech giants, and while a startup may have high equity upside, limited liquidity could be a tough selling point.

So, private companies, particularly those in the AI space, need to recognize that allowing employees to realize value from their equity holdings can be a game-changer in recruitment and retention strategies. Here’s why liquidity programs are an essential part in today's AI talent market and how they can give companies a competitive edge.

What is the AI talent war?

The AI talent war refers to the intense competition among technology companies to recruit and retain highly specialized professionals, including AI researchers, machine learning engineers and data scientists. As demand for these skills outpaces supply, compensation packages have reached unprecedented levels.¹

Pay can vary substantially by role and factors like geography, but as one reference point, consider a recent LinkedIn study that found a typical AI job posting lists a $177,000 salary, which is more than twice the $80,000 average for non-AI roles.²

While public tech giants may be able to offer more liquid stock and immediate cash, private companies must find other ways to compete. Offering structured liquidity for employee equity has emerged as one of the most critical strategies for leveling the playing field.

The AI talent market: Competitive, costly and highly mobile

AI professionals command some of the highest salaries in tech, often exceeding six figures at mid-career levels. Some top AI researchers can earn compensation packages rivaling those of professional athletes, with total compensation potentially exceeding $1 million in certain cases. This is particularly true at leading AI-driven private companies like OpenAI, Anthropic, Databricks and Perplexity, along with public tech giants like Google, Meta and Microsoft, which are known to offer lucrative packages to attract and retain AI talent.³

However, despite these generous compensation structures, the competition for talent remains fierce. Paying a high salary isn't necessarily enough. Some AI-focused companies have been known to poach top talent by offering even larger compensation packages, while others might be able to win over employees by offering opportunities to work on cutting-edge challenges. There's not a universal way to win the AI talent wars, but companies should be aware of the competition.

For private companies, especially early-stage ones with limited funding to compete on salary, paying attention to areas like equity compensation could help. If you can attract talent based on your mission, while also offering possible equity upside that they can access through liquidity events, that could potentially help improve your talent management.

The problem with illiquid equity in AI startups

While stock options and RSUs are frequent components of compensation packages at AI startups, they present a challenge: employees often have to wait years, sometimes even a decade, before they can realize the value of their equity. If the company does not go public or get acquired, employees may never see financial benefits from their stock holdings.

This lack of liquidity is particularly problematic in a high-demand industry like AI, where professionals frequently receive competing offers. If a competing firm offers immediate cash bonuses or more liquid equity, employees may be tempted to leave their existing roles, even if they believe in their current employer's mission. As a result, companies that fail to provide liquidity solutions risk losing top AI talent to competitors with more attractive compensation structures. This could become even more relevant as some of the largest AI companies like OpenAI and Anthropic are reportedly gearing up to go public.⁴

If going public increases liquidity for employees at these companies, it's possible that employees at smaller startups will look closer at how they also may be able to capture the value of their equity.

How employee liquidity programs can strengthen AI talent retention

Implementing liquidity programs for employees can significantly improve a company's ability to attract and retain AI talent. Here are a few ways companies can provide liquidity while still maintaining financial stability:

1. Secondary market sales. One of the most effective ways to offer liquidity is through secondary market sales, where employees can sell a portion of their stock to approved investors, subject to conditions like share availability and transfer restrictions. A private marketplace such as Forge can help facilitate these transactions, allowing employees to cash out some of their equity without waiting for an IPO or acquisition. This approach gives employees financial flexibility while companies with guardrails like Right of First Refusal (ROFR) clauses can maintain control over their cap tables.

2. Tender offers. Companies can also organize tender offers, in which they or select investors buy back shares from employees at a predetermined price. These structured liquidity events can be scheduled annually or tied to specific milestones, ensuring employees have predictable opportunities to monetize their stock. For example, in August 2026, OpenAI reportedly completed a tender offer by buying back about $7 billion worth of current and former employees' shares at an $852 billion valuation. As such, some employees were able to cash out some of their shares, rather than waiting an unknown amount of time for OpenAI to potentially IPO.⁵

3. Loan programs against equity. Some companies partner with financial institutions to offer loans backed by employee equity. This allows employees to access liquidity without selling their shares outright. While this method carries some risk, such as if the equity drops in value below the loan value, it can be an attractive option for employees who need cash but want to retain their equity stake.

4. Hybrid compensation models. Companies can redesign their compensation structures to include more immediate cash incentives alongside long-term equity. For example, companies might pair cash bonuses with equity refreshes at key milestones. That way, even if the equity remains illiquid, employees can enjoy more cash liquidity as the company grows.

See if liquidity can provide a strategic advantage in the AI talent war

AI professionals are not always just looking for high salaries; they also may want financial security and the ability to participate in the upside of the companies they help build. Liquidity programs could create a win-win situation: employees gain financial flexibility, while companies might be able to increase retention and reduce the risk of losing key talent to competitors. Offering more liquid equity could also be attractive to smaller private companies that may have more flexibility on the equity side but less room on the balance sheet to pay higher salaries.

For AI startups and other high-growth private companies, incorporating a structured liquidity program can significantly enhance your attractiveness as an employer. When prospective employees know they won't have to wait indefinitely to benefit from their equity stake, they may be more likely to commit to a company long-term. Likewise, existing employees who can periodically liquidate some of their holdings may be less likely to be recruited away by competitors offering immediate financial rewards.

The AI talent war shows no signs of slowing down. As AI continues to shape industries, the demand for top talent will likely only grow. Companies that want to remain competitive might consider going beyond traditional compensation models and incorporate liquidity opportunities into their employee benefit offerings.

To help your team as you compete for talent, Forge offers a broad range of liquidity solutions, such as technology infrastructure to support tender offers and access to an institutional investor network that could help you raise capital.

To learn more about how we can help your company offer employees liquidity, please contact us. Individual shareholders exploring liquidity options can also create a free account on Forge.