Even Google’s AI division, DeepMind, is currently being investigated. Investigators are looking into its use of noncompete clauses with employees across the pond in the United Kingdom. These agreements prevent the employees specified from going to competitors for as long as one year. This practice has been dubbed “aggressive” by industry insiders. Amid fierce competition for top AI talent, this strategy aims to secure DeepMind’s workforce against the likes of OpenAI and other major players.
That landscape has become way more crowded and competitive as companies race to attract top AI researchers and engineers. As a direct consequence, recruiting and especially retaining talented staff has been an enormous challenge. In fact, just last year the U.S. Federal Trade Commission (FTC) ruled to prohibit most noncompete agreements. This ban doesn’t extend to DeepMind’s new headquarters in London, UK—which means the company can continue wielding noncompete agreements at their full effect.
For many DeepMind employees, the toll taken by these noncompete agreements is deep. Fewer qualified professionals are able to accept offers from rival firms. Even during their imposed limit on campaign activity they are still paid. This system effectively gives a very long period of paid leave, which has startled some employees. The downtime can lead to feelings of isolation as researchers observe the rapid advancements occurring in the AI sector.
The rank-and-file DeepMind staff are in for a difficult time. In part because of this, workers are increasingly calling rivals such as Microsoft in order to explore escape routes through their noncompete agreements. The unfolding situation has exploded on social media channels. Microsoft’s Vice President of AI recently took to X to warn that it poses a serious threat to talent mobility within the space.
DeepMind’s strategic application of noncompete agreements underscores an ongoing and increasingly polarizing debate in the tech industry. The company justifies its legalistic proclivity as necessary to secure its commercial animals and sharpen its monopolistic edge. On the other hand, critics say this approach kills innovation and trips up progress by preventing smart people from working for other companies.
Google did not respond to TechCrunch’s request for comment on this story. This silence leaves a host of questions about the company’s stance on noncompete agreements, and their potential long-term impact on the AI landscape.
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