The Wall Street Journal (WSJ) reported on the 30th (local time) that as artificial intelligence (AI) corporations in Silicon Valley and Wall Street quant firms wage fierce bidding wars to lock in top math talent in their 20s, cases are emerging in which starting salaries exceed $1 million (about 1.42 billion won).
According to the report, major AI corporations such as OpenAI and Anthropic and quant trading firms like Jane Street and Optiver, which conduct transactions using sophisticated mathematical models, are driving up starting pay as they compete for a tiny pool of elite university-trained math talent.
In general, entry-level compensation packages at top-tier quant corporations range from $350,000 to $500,000 (about 500 million to 710 million won). It is also common to earn more than this, and even if one starts with a relatively lower salary, it is often the case that within a few years after joining, pay exceeds $1 million.
However, industry officials said the AI boom has changed the starting point for entry-level salaries.
Matt Stable, founder of New York headhunting firm Stable Search, told the WSJ, "Just a few years ago it was very unusual for a new hire's salary to reach seven figures ($1 million or more), but now no one bats an eye at a $1 million offer."
Regarding this change, he said, "The industry is divided into 'before OpenAI' and 'after OpenAI,'" noting that since OpenAI opened the era of Generative AI with ChatGPT in 2022, the battle to recruit math talent has also kicked into high gear.
The capabilities needed to develop large language models (LLMs) overlap significantly with those required in the quant field. On top of that, as quant corporations have recently adopted Machine Learning and AI in earnest, the talent needed by both industries has effectively become the same. As a result, quant corporations are competing for a tiny number of math prodigies and Ph.D.-level talent.
In the industry, this hiring landscape is compared to a "pro athlete recruitment war." Portfolio managers are said to ignore existing pay structures and make eye-popping offers to secure talent early, aiming to prevent standout interns from going to rival firms.
Kevin Casata, a headhunter specializing in quantitative finance, said, "In rare cases, first-year compensation for new hires reaches $1.5 million (about 2.1 billion won)."
Another factor pushing up starting pay is that quant corporations have deep pockets after posting record results recently.
Jane Street, a standard-bearer of quant finance, posted $10.3 billion (about 14.7 trillion won) in net income in the first quarter this year. With a small staff, it generated nearly twice the net income of major investment banks Goldman Sachs and Morgan Stanley.
Quant corporations are racing to secure the next generation of math prodigies to maintain an edge in financial markets. To get a head start, they are mobilizing every tool available—sponsoring high school math competitions, hosting chess and cube contests, and organizing campus invitation events—to court young mathematicians familiar with "nerd culture."
Daniel Woo, who majored in computer engineering at Stanford in 2021 and joined a quant firm as a researcher, told the WSJ, "Back then, I accepted an offer because quant corporations presented the highest compensation terms, but things have changed now." He said most of his colleagues are heading to Anthropic or OpenAI with the expectation of directly working on cutting-edge AI technologies.
Some also worry that as compensation battles between Wall Street and Silicon Valley intensify, more capable talent who should remain in university labs or pure academia are being drawn into the industry by high pay.