During tech gold rushes like AI, the most skilled engineers ("level 100 players") are drawn to lucrative but less impactful ventures. This creates a significant opportunity cost, as their talents are diverted from society's most pressing challenges, like semiconductor fabrication.

AI lowers the barrier to entry, flooding the market with "whiteboard founded" companies tackling low-hanging fruit. This creates a highly competitive, consensus-driven environment that is the opposite of a "good quest." The real challenge is finding meaningful problems.

Companies like DeepMind, Meta, and SSI are using increasingly futuristic job titles like "Post-AGI Research" and "Safe Superintelligence Researcher." This isn't just semantics; it's a branding strategy to attract elite talent by framing their work as being on the absolute cutting edge, creating distinct sub-genres within the AI research community.

Meta's strategy of poaching top AI talent and isolating them in a secretive, high-status lab created a predictable culture clash. By failing to account for the resentment from legacy employees, the company sparked internal conflict, demands for raises, and departures, demonstrating a classic management failure of prioritizing talent acquisition over cultural integration.

While high-profile layoffs make headlines, the more widespread effect of AI is that companies are maintaining or reducing headcount through attrition rather than active firing. They are leveraging AI to grow their business without expanding their workforce, creating a challenging hiring environment for new entrants.

The idea that AI will enable billion-dollar companies with tiny teams is a myth. Increased productivity from AI raises the competitive bar and opens up more opportunities, compelling ambitious companies to hire more people to build more product and win.

Layoffs at a leading AI company like Meta are not just a negative signal. They function as a healthy redistribution of talent. Engineers who don't meet Meta's extremely high bar are still elite performers who get quickly absorbed by other companies, accelerating innovation across the broader tech ecosystem.

Companies racing to add AI features while ignoring core product principles—like solving a real problem for a defined market—are creating a wave of failed products, dubbed "AI slop" by product coach Teresa Torres.

Despite Meta offering nine-figure bonuses to retain top AI employees, its chief AI scientist is leaving to launch his own startup. This proves that in a hyper-competitive field like AI, the potential upside and autonomy of being a founder can be more compelling than even the most extravagant corporate retention packages.