In [26]: # openai_salary.ipynb
Direct answer: OpenAI ML engineer total comp
A senior (L5-equivalent) ML engineer at OpenAI earns approximately $700k to $1.1M in total compensation: base salary $280k to $400k plus equity grants whose annualised paper value is roughly $400k to $700k. Since the 28 October 2025 recapitalization, grants are conventional OpenAI Group PBC equity (RSUs or options) rather than capped PPUs.
$700k-1.1M
L5 senior TC
$1.23M
L6 (Levels.fyi)
PBC
equity form
Abstract
OpenAI is one of the two largest frontier AI labs by revenue and employee count, and the highest-profile single destination for senior ML engineer compensation in 2026. Following its October 2025 recapitalization, OpenAI now grants conventional equity in OpenAI Group PBC (a public benefit corporation), replacing the capped Profit Participation Unit (PPU) structure it used previously. Senior (L5-equivalent) total compensation is approximately $700,000 to $1,100,000 [1]. With a confidential IPO filing lodged in June 2026 and the CFO telling employees the company will be public in 2027, the liquidity outlook for that equity is changing.
1 Level bands are anchored to Levels.fyi OpenAI aggregated self-reported data (L4 median ~$654k, L5 ~$919k, L6 ~$1.23M, highest single reported package ~$1.89M; checked September 2026), which is crowd-sourced self-report rather than a figure OpenAI publishes, cross-referenced with public reporting in The Information and Bloomberg. OpenAI uses non-standard internal titling, so mapping to the L4-L7 ladder is approximate, and no aggregator publishes a distinct L7/principal median band, so the L7 figure is a floor extrapolated from the open-ended top of the reported data. Equity and option terms vary by cohort and offer; candidates should request explicit terms. This is not compensation advice.
table oai-1 : L4 to L7
| Level | Total comp | Base |
|---|---|---|
| L4 / Mid-senior | $520k - $750k | $260k - $360k |
| L5 / Senior | $700k - $1.1M | $280k - $400k |
| L6 / Staff | $1.0M - $1.5M | $320k - $440k |
| L7 / Principal | $1.6M+ | $360k+ |
Table oai-1. OpenAI total compensation by L-equivalent level. Bands anchored to Levels.fyi medians (checked September 2026); L7 shown as a floor because no aggregator publishes a distinct principal band. Base salary is roughly 40 to 55 percent of total comp; the balance is OpenAI Group PBC equity. For the Anthropic comparison at each level, see the OpenAI vs Anthropic side-by-side.
section oai-2 : from PPUs to PBC stock
Until late 2025, OpenAI's compensation was unusual among frontier AI labs: the company operated under a capped-profit structure (a for-profit operating entity with a cap on investor returns, governed by a non-profit parent), and employees received Profit Participation Units (PPUs) rather than conventional equity. A PPU was a contractual right to a share of OpenAI's profit distributions, subject to a stated per-unit cap, rather than an ownership stake.
That structure ended on 28 October 2025. After approval from the California and Delaware attorneys general, OpenAI converted its for-profit entity into OpenAI Group PBC (a public benefit corporation), with the renamed OpenAI Foundation retaining control. The OpenAI Foundation holds roughly 26 percent of the PBC, Microsoft roughly 27 percent, and employees and other investors the remaining roughly 47 percent. Outstanding PPUs converted into PBC shares and the prior return cap was removed, so equity value now tracks the company's valuation without a contractual ceiling.
For ML engineers evaluating OpenAI offers in 2026, the practical implication is that new grants are conventional equity (restricted stock units or options in OpenAI Group PBC) on a standard 4-year vesting schedule, rather than capped PPUs. Those grants are struck against a steeply rising reference valuation: OpenAI's March 2026 round raised $122 billion at an $852 billion post-money valuation, up from roughly $500 billion at its October 2025 employee tender offer, and in September 2026 OpenAI was reported to be in early talks for a further private round at around a $1.2 trillion valuation, though no such round had closed.
Tax treatment now follows conventional equity rules rather than the old PPU distribution model. RSUs are taxed as ordinary income at vesting (or at the vesting-plus-liquidity event for double-trigger grants); NSO options are taxed on the spread at exercise. For an ML engineer in California, the combined marginal federal-plus-state rate at these compensation levels approaches 50 percent, so the timing of vesting events and tender-offer sales is the main tax-planning lever.
section oai-3 : liquidity outlook
OpenAI's reference valuation has risen steeply, which is why recent grants and secondary sales are struck against a fast-moving mark. The March 2026 round priced the company at $852 billion post-money on a $122 billion raise, and an August 2026 employee buyback of about $7 billion closed at the same $852 billion valuation. In September 2026 OpenAI was reported to be in early talks for a further private round at around a $1.2 trillion valuation, though no such round had closed and no figure is confirmed until a round prices.
OpenAI filed confidentially for a US IPO in June 2026. On 19 August 2026, CFO Sarah Friar told employees that OpenAI "will be a public company in 2027," or sooner if its business continues to inflect, and September 2026 reporting indicated the company was weighing a further private round rather than a 2026 listing. No listing date, share price, or share count has been set.
For an ML engineer holding OpenAI equity, a completed IPO would matter in three ways: it would create the first broad public liquidity event, supplementing the periodic tender offers as a way to sell vested equity; it would typically carry a lock-up of around six months after listing before employees can sell; and, because the return cap was removed in the 2025 recapitalization, PBC equity now tracks the company's valuation without a contractual ceiling, so realised value depends on where the public market prices the company.
section oai-4 : common questions
What is the total compensation for an ML engineer at OpenAI in 2026?
Senior (L5-equivalent) ML engineer total compensation at OpenAI in 2026 is approximately $700,000 to $1,100,000, comprising base salary $280,000 to $400,000 and equity grants whose annualised paper value is roughly $400,000 to $700,000. These are total-compensation figures (base salary plus the annualised paper value of equity), not base salary alone. Since OpenAI's October 2025 recapitalization into OpenAI Group PBC, these grants are conventional equity (restricted stock units or options), which replaced the capped Profit Participation Unit (PPU) structure OpenAI used before the restructuring.
What is the L4 salary at OpenAI?
At the L4 (mid-senior) equivalent level, ML engineer total compensation at OpenAI is approximately $520,000 to $750,000. Levels.fyi aggregated self-reported data (checked September 2026) shows an OpenAI L4 software-engineer median of about $654,000, which sits inside this band. OpenAI uses non-standard internal titling, so the mapping to a conventional L4 band is approximate; L4 is the entry-to-mid track above new-graduate hires.
What is the L7 (principal) salary at OpenAI?
No aggregator publishes a distinct L7 (principal / distinguished) median band for OpenAI. Levels.fyi self-reported data shows an OpenAI L6 median of about $1,230,000, with the highest single reported OpenAI package around $1,890,000 (an L7 submission), so a principal-level ML engineer sits toward that open-ended top rather than inside a benchmarked median band. The population at this band is very small, packages are negotiated individually, and total compensation is dominated by equity, so realised value depends heavily on OpenAI's valuation trajectory and the timing of liquidity events (periodic tender offers or an eventual IPO). Treat any single principal-level number as an individual data point, not a published market rate.
How does OpenAI equity work after the 2025 restructuring?
On 28 October 2025 OpenAI converted its capped-profit for-profit entity into OpenAI Group PBC, a public benefit corporation controlled by the renamed OpenAI Foundation, after approval from the California and Delaware attorneys general. The OpenAI Foundation holds roughly 26 percent of the PBC, Microsoft roughly 27 percent, and employees and other investors the remaining roughly 47 percent. Outstanding PPUs converted into PBC shares and the prior return cap was removed, so equity value now tracks the company's valuation without a contractual ceiling. New grants are conventional equity (RSUs or options) vesting over a standard 4-year schedule. Equity remains illiquid until a tender offer or IPO.
How much is OpenAI worth, and how does that affect equity?
OpenAI's March 2026 round raised $122 billion at an $852 billion post-money valuation, up from roughly $500 billion at its October 2025 employee tender offer. In August 2026 a $7 billion employee buyback closed at the same $852 billion mark, and in September 2026 OpenAI was reported to be in early talks for a further private round at around a $1.2 trillion valuation, though no such round had closed. For an ML engineer, the reference valuation matters because grants are struck against it: a rising mark increases the paper value of new equity, but realisation still depends on a liquidity event (a tender offer or an eventual IPO), and the paper value can move down as well as up.
When will OpenAI IPO?
OpenAI filed confidentially for a US IPO in June 2026. On 19 August 2026, CFO Sarah Friar told employees that OpenAI "will be a public company in 2027," or sooner if its business continues to inflect, and September 2026 reporting indicated the company was weighing a further private round rather than a 2026 listing. No listing date, share price, or share count has been set, so any specific IPO valuation is speculation until the offering prices. A completed IPO would create the first broad liquidity event for employee equity, replacing the periodic tender offers, and would typically carry a lock-up of around six months after listing before employees can sell.
How is OpenAI equity taxed?
Since the October 2025 recapitalization, tax treatment follows conventional equity rules rather than the old PPU distribution model. RSUs are taxed as ordinary income at vesting (or at the vesting-plus-liquidity event for double-trigger grants); NSO options are taxed on the spread between strike price and fair-market value at exercise. For an ML engineer in California, the combined marginal federal-plus-state rate at these compensation levels approaches 50 percent, so the timing of vesting events and tender-offer sales is the main tax-planning lever. This is not tax advice; consult a qualified adviser on any specific grant.
Does OpenAI pay more than Anthropic for ML engineers?
At senior levels, OpenAI typically pays approximately 5 to 10 percent higher headline total compensation, reflecting its larger revenue base. OpenAI senior (L5-equivalent) total comp of $700,000 to $1,100,000 sits slightly above Anthropic's $650,000 to $1,000,000 at the median. At the staff (L6) level Anthropic's crowd-sourced Staff figure (~$1.41M, small sample) sits at or slightly above OpenAI's L6 median (~$1.23M), so the OpenAI premium is a senior-level phenomenon rather than a fixed gap across the ladder. The gap is small and rarely the deciding factor; the choice is usually driven by research focus, team fit, and each candidate's view of the two labs' equity structures. See the side-by-side comparison for a level-by-level breakdown.
OpenAI vs Anthropic
Side-by-side by level, PBC vs capped options
Anthropic salary deep dive
Single-lab: level bands, capped options, IPO
Frontier-lab tier overview
T1 deep dive, equity forms
Total comp breakdown
How to value a PBC equity package
Negotiation playbook
Frontier-lab offer tactics
Bay Area metro
Where OpenAI HQs
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Treat everything on this site as compensation reference assembled from published surveys and public filings, not as financial advice and not as a benchmark any single negotiation should be anchored to. Your own offer turns on the employer, the level it is pitched at, the equity instrument behind it and the market on the day it is made.