An executive, especially a board member, cannot simply start developing a spinout idea on the side. This can breach fiduciary duties and confidentiality agreements owed to the parent company. A formal, legally documented 'clean separation' must occur before any work on the new venture begins.

When Thinking Machines' CTO departed for OpenAI, the company cited "unethical conduct." Insiders speculate this is a "snaky PR move" or "character assassination leak" to control the narrative as talent poaching intensifies among AI labs.

With high partner turnover at large venture firms, a key diligence question for founders is whether the specific partner joining their board is likely to remain at that firm. A partner's departure can be highly disruptive, making their stability more important than firm brand.

In an acquihire, the buyer needs to interview the entire team pre-deal to justify the high valuation. However, the seller is hesitant to grant this access, as their 'crown jewel' assets—the people—could be poached if the acquirer decides not to proceed with the acquisition after meeting everyone.

When an executive from one tech company (Anthropic) resigns from another's board (Figma), it signals imminent competition. This corporate maneuver, echoing Steve Jobs' 2009 move regarding Google's CEO on Apple's board, serves as a public indicator of a strategic conflict of interest before a product launch.

The drama at Thinking Machines, where co-founders were fired and immediately rejoined OpenAI, shows the extreme volatility of AI startups. Top talent holds immense leverage, and personal disputes can quickly unravel a company as key players have guaranteed soft landings back at established labs, making retention incredibly difficult.

Factory's CEO publicly accused a departing advisor of unethical conduct for joining competitor Cognition. Cognition's CEO, Scott Wu, skillfully countered this by praising the individual as a 'living legend' they were thrilled to hire, turning a public smear attempt into a positive PR moment that reinforced his company's desirability.

Public announcements about leaving a startup for 'mental health' reasons can be a polite fiction to mask an immediate move to a direct competitor. This trend highlights the intensity of the AI talent wars, where such narratives provide convenient cover for being poached.

In an earn-out scenario, acquiring another company that competes for the same geography or clients can make a seller's targets unachievable. This is a major breach of trust unless the possibility was discussed upfront. Serial acquirers must plan for this and communicate their M&A strategy transparently.