Google DeepMind AI staff reportedly tied to "aggressive" noncompete clause — Offering year-long PTO to stop them leaving for rivals

Contrary to emerging trends and a popular opinion, it's becoming apparent that generative AI can seemingly create job opportunities rather than steal them from humans. The landscape has turned out to be more lucrative as it advances and scales greater heights, with companies like Microsoft paying its AI staff top dollar compared to someone working in the Azure division.

The Redmond giant pays an average AI software engineer up to $377,611, which is $120,000 more than the average salary of an employee in the Azure division.

And as it now seems, Google has a nifty trick up its sleeve to retain AI talent under its umbrella, which includes paying them up to a year to do nothing as a bid to prevent them from joining rival AI labs.

According to a report by Business Insider, Google DeepMind leverages "aggressive" noncompete agreements to prevent its AI staff from defecting to rival AI firms for up to a year.

In some instances, AI staff can be subjected to excruciatingly long paid time off (PTO). While their bank accounts may grow larger with minimal effort to show, the technique may, in the long run, hurt the employees' sense of fulfillment, especially with the ever-evolving AI landscape.

Per sources familiar with Google DeepMind's operations, several factors are considered when subjecting AI staff members to these noncompete agreements, including their seniority and the criticality of their contribution to the company's AI efforts.

While speaking to Business Insider about the issue, a Google spokesperson indicated:

"Our employment contracts are in line with market standards. Given the sensitive nature of our work, we use noncompetes selectively to protect our legitimate interests."

Interestingly, while Google referred to its approach as standard practice, Microsoft's AI VP, Nando de Freitas, shared that several Deepmind staffers had reached out in despair, highlighting the stringent nature of Google's noncompete agreements, seemingly leaving them stuck at the company.

To that end, it's worth noting that noncompete laws vary in the US by state. For instance, these clauses should be unenforceable in California, which is home to several major tech firms, including Google.

A new law passed in 2023 expanded the California restriction, banning the enforcement of noncompete agreements entered into outside the state.

Read more: Google CEO throws lethal jabs at Microsoft's AI efforts

However, the same can't be said about noncompete agreements in the United Kingdom, where Google DeepMind is headquartered. The law allows companies to enforce these clauses if they are considered reasonable and designed to protect the employer's business interests and operations.

"Who wants to sign you for starting in a year?" indicated a former DeepMind employee. "That's forever in AI."