This final issue of the year examines the ongoing battle for AI talent, a topic we've explored since the newsletter began almost two years ago. Before diving into updates from Google and Meta, I need your questions for a mailbag issue I'll publish in early 2025. Submit them via our form or in the comments. Databricks recently announced the largest private tech funding round ever, aiming to raise $10 billion primarily to repurchase vested employee stock. This highlights how compensation strategies in the tech industry, particularly the fierce competition for AI talent, are critical but often underreported. I discussed this with Naveen Rao, VP of AI at Databricks, who provided insights into the motivations behind the funding and the scarcity of AI experts. Despite the demand for infrastructure talent, top-tier researchers remain rare, akin to searching for a LeBron James in AI.

Companies like OpenAI, Anthropic, Amazon, Google, Meta, Microsoft, and others are intensely competing for these individuals. Rao believes that while AI is advancing, it's not near achieving artificial general intelligence (AGI). The existing AI models, though capable, are limited by current compute and access constraints. Improvements in infrastructure management are expanding talent pools, but finding those who can innovate at the cutting edge remains challenging. Elsewhere in tech, Google has streamlined its workforce, reducing managerial roles by 10%, and Meta will end free EV charging at its Bay Area locations starting in January. Meanwhile, OpenAI teased its forthcoming "reasoning" model, and TikTok is set to make its case before the Supreme Court ahead of a potential US ban. Apple clashed with Meta over EU regulations concerning iOS compatibility with third-party hardware, and Amazon faces office space shortages delaying its return-to-office mandates in certain cities. Perplexity raised $500 million, highlighting its growth in revenue and acquisition of another AI startup. In notable career moves, Meta promoted John Hegeman to chief revenue officer, while OpenAI's veteran researcher Alec Radford is leaving but will maintain ties with the company. Coda and Grammarly are merging, with Coda's CEO taking on dual leadership roles. For more on these stories, subscribe to The Verge for unlimited access, and share your thoughts or tips via Signal for direct feedback.