In a recent all-hands meeting held by Meta, executives addressed allegations made by OpenAI CEO Sam Altman regarding substantial signing bonuses offered to attract OpenAI’s talent.
Meta’s Chief Technology Officer Andrew Bosworth dismissed Altman’s claims, questioning the honesty behind them. “Sam is just being dishonest here,” he stated, adding that Altman implies these offers are being made across the board. “The market’s hot, but it’s not that hot,” Bosworth emphasized during the meeting.
The idea of “$100 million bonuses” quickly became a viral topic following Altman’s mention on his brother’s podcast. Bosworth clarified that these figures are often misrepresented, noting, “Sam neglects to mention that he’s countering offers for a very small number of senior positions in our new AI team. That doesn’t reflect the broader AI landscape. He hasn’t shared what the actual terms are either; it’s not merely a sign-on bonus; there are numerous components involved.”
Bosworth then referenced reports about several researchers from OpenAI transitioning to Meta, indicating there are more in negotiations.”
“Sam tends to exaggerate, and I understand why he does it, especially since we are successfully attracting talent from OpenAI,” Bosworth remarked. “He’s clearly not pleased with that.”
The meeting, which included many attendees from the company’s engineering “bootcamp” program, had a light-hearted moment when Bosworth assured new hires, “You didn’t screw up. You made a great choice. Compensation is where it should be.”
Meta’s Chief Product Officer Chris Cox also commented on OpenAI during the session, noting that while Meta’s AI application has a billion monthly users, engagement levels do not match those of ChatGPT users. He revealed that the standalone Meta AI app has only 450,000 daily users, many using it primarily for managing their Ray-Ban Meta glasses.
Cox remarked, “We won’t directly compete with ChatGPT to enhance productivity in email writing. Our focus should be on entertainment and connections with friends, where we excel, as part of our strategic plan moving forward.”
Meta officials that day opted not to provide comments regarding the internal meeting.
Iyo versus io
On Thursday, I had the opportunity to speak with Jason Rugolo, who is currently embroiled in a lawsuit against a major player in the tech industry.
Rugolo, the founder of the AI startup Iyo, recently secured a temporary restraining order that prevents OpenAI from utilizing the “io” branding in its upcoming hardware division led by Sam Altman and Jony Ive. Altman, in response, has suggested on X that Rugolo’s legal action stems from OpenAI’s refusal to invest in or acquire Iyo, which is set to unveil its first AI-powered in-ear headphones later this year.
Rugolo confirms, backed by court documents, that he did pitch his venture to Altman on several occasions. Negotiations regarding a potential acquisition took place earlier this year. Yet he insists that his legal moves are not an act of vengeance but a necessary step to prevent confusion between his upcoming Iyo One headphones and OpenAI’s io.
Trademark disputes are common but this particular case has captured attention due to the heightened interest in the products that Altman and Ive are developing, with the first device reportedly not being a wearable item.
“I had a significant shift in perspective regarding Altman,” Rugolo shared. “During our meetings, I held him in high regard as a visionary entrepreneur. That perception vanished following their announcement of io.”
Rugolo recounted a moment when he questioned whether he was being undermined: “When I received a veiled threat from him over the phone, it became clear to me that he was not someone I could trust.” He expressed concern that Altman is trying to sway public opinion against him, portraying him negatively in the process.
OpenAI spokesperson Kayla Wood commented, “This is a frivolous trademark dispute, not a matter of stolen concepts or technologies. Iyo demonstrated a non-functional product in May 2025, which did not meet our standards in hopes of an acquisition, which we declined. Rugolo was aware of the io name and did not express any concerns before our announcement.”
Rugolo reported raising significant funds from his manufacturing partner, Pegatron, and an unnamed billionaire, providing Iyo with sufficient runway through late 2026. He confirmed a product he hinted at in a viral TED talk is set to launch later this year, mentioning plans to travel to China to oversee production.
Ready to navigate the legal process, Rugolo hopes for a resolution that allows both firms to compete fairly. “I want to meet them in the marketplace to see who can deliver compelling products,” he asserted. “They have talented designers; they can certainly create an alternative name. They cannot use the name I’ve built since 2019.”
AI is coming for games
Runway, a startup valued at $3 billion, has gained notoriety for its contribution of generative AI technologies to Hollywood. Now, it is poised to enter the gaming realm.
Recently, I gained access to an emerging interactive gaming experience that Runway aims to debut next week, according to CEO Cristóbal Valenzuela. This consumer-friendly offering is currently simplistic, featuring a chat interface that allows text and image production, with video game generation expected later this year. Valenzuela mentioned that discussions are ongoing with several gaming companies regarding the utilization of Runway’s technology and their datasets for training purposes.
Reflecting on interactions with industry stakeholders, Valenzuela recognizes parallels between the gaming sector and Hollywood at the onset of generative AI’s rise. While initial resistance was notable, acceptance has gradually improved in production processes. Runway’s technology was used in Amazon’s House of David, and the firm is collaborating with numerous major studios and Fortune 100 companies.
“If we can help a studio expedite movie production by 40 percent, we are likely to achieve similar results for game developers,” Valenzuela remarked, noting that the gaming sector is adapting more rapidly than the film industry did a couple of years prior.
During our Zoom meeting, I inquired about his recent discussions regarding acquisition by Meta: “I believe we have more intriguing intellectual challenges by remaining independent right now,” he responded.
Elsewhere in OpenAI
No one knows what AGI actually means. This reality has become clear through an insightful investigation by The Information focused on the negotiations between Microsoft and OpenAI. This detailed report explains that Microsoft will lose exclusive rights to OpenAI’s intellectual property should they reach what OpenAI’s board defines as “sufficient AGI,” determined solely by the potential for profit generation. This means OpenAI is not required to actually produce these profits.
Two noteworthy deals: OpenAI has secured a new collaboration and made a minor acquisition this week. The collaboration with Applied Intuition aims to enhance next-generation AI experiences in vehicles. Furthermore, the small team at Crossing Minds, an AI firm that specializes in personalized e-commerce recommendations, is joining OpenAI. Founder Alexandre Eobicque expressed excitement about contributing to OpenAI’s research, focusing on agents and information retrieval.
Personnel log
Noteworthy career changes in the tech sphere:
- The three founders of OpenAI’s Zurich research office, Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai, have confirmed they are joining Meta. “No, we did not get 100M sign-on, that’s fake news,” Beyer clarified.
- Elon Musk has initiated changes at Tesla, reportedly firing Omead Afshar, the head of manufacturing. HR leader Jenna Ferrua has also departed.
- Nate Mitchell is now chief product officer at Seasame, joining fellow Oculus co-founder Brendan Iribe.
- Databricks has hired Alan Davidson, previously the Assistant Secretary of Commerce for the NTIA, to oversee government affairs.
Link list
Additional articles to explore:
- Anonymous tech workers discuss the impact of AI on job losses.
- Anthropic released a study on how users utilize Claude for emotional assistance, highlighting potential insights that could benefit OpenAI.
- OpenAI’s Sam Altman and Brad Lightcap participated in a live recording of the Hard Fork podcast, displaying some notably intriguing moments.
- Insights on the current state of consumer AI from Menlo Ventures.
- A glimpse into Silicon Valley’s anti-college movement.
- Venice’s preparations for the upcoming wedding of Jeff Bezos and Lauren Sanchez.
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