In a bid to curb talent poaching by competitors, ByteDance, the parent company of TikTok, has reportedly started offering unique stock options to its AI lab employees.



The stock options are tied to ByteDance’s Seed AI division, a first for the company to issue shares linked to a specific business unit. This approach allows employees to profit from Seed’s growth without dilution from ByteDance’s other business ventures, the Financial Times reported on Tuesday. 



ByteDance has given Seed employees globally the option to buy Doubao stock at $13 per unit this month. The value of these units has surged nearly 30% since last year, mirroring the faster commercialization of ByteDance’s LLMs in the cloud business and improved model performance.



The decision is a reaction to rivals like Tencent (OTC:TCEHY) luring away key research team members from ByteDance. High-profile exits include Xiao Xuefeng, a senior member of Seed’s visual AI platform, and Zhang Chi, an infrastructure specialist.



However, this compensation strategy has ignited debate as it could potentially cause internal division, discourage teamwork, and limit staff mobility within the company.



ByteDance did not immediately respond to Benzinga‘s request for comments.



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<h2>Big Tech Battles for AI Talent</h2>



The talent war in the tech industry has been heating up, with companies like OpenAI offering hefty bonuses to retain and attract employees. In 2025, OpenAI reportedly offered $1.5 million bonuses for every employee over two years, including new hires, to combat talent poaching by Meta Platforms Inc. (NASDAQ:META) and other tech giants.



According to a previous report, Alibaba Group (NYSE:BABA) lost senior AI talent from its Tongyi Lab as rivals like Tencent and JD.com (NASDAQ:JD) aggressively poached researchers. Key departures include former speech lab head Yan Zhijie, who moved to JD.com after briefly joining Tencent, and Bo Liefeng, who left to join Tencent's Hunyuan AI team.



Microsoft AI CEO Mustafa Suleyman criticized Meta Platforms for reportedly offering signing bonuses of up to $100 million and compensation packages worth $250 million to attract AI talent. Instead of competing through oversized pay packages, Suleyman said his strategy at Microsoft and previously at DeepMind has focused on carefully selecting candidates who fit the company's culture and work well within cohesive teams.



However, some industry leaders, like Meta’s AI Chief, have refuted claims that financial incentives are the primary motivator for researchers. He argued that access to substantial computing power and the opportunity to make significant progress in their field are more attractive to researchers.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock



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ByteDance, the parent company of TikTok, is reportedly offering exclusive stock options to its AI lab employees to combat talent poaching from competitors like Tencent. This initiative allows employees to benefit from the growth of the Seed AI division without dilution from other ventures. However, this strategy may lead to internal divisions and limit staff mobility. The tech industry is experiencing a talent war, with companies like OpenAI and Meta offering substantial bonuses to attract and retain AI talent.

- ByteDance has introduced unique stock options for its AI lab employees to prevent talent poaching by competitors.  
- This initiative ties options to the Seed AI division, allowing employees to benefit from its growth without dilution from other units, with Doubao stock priced at $13 per unit.  
- However, the strategy has sparked concerns about potential internal divisions and the impact on teamwork within the company.

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TikTok Owner ByteDance Is Reportedly Offering AI Staff A Sweet Deal As Talent War Heats Up