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China's AI business valuation is 4 times higher than that in the United States, with 2018% returning from the Silicon Valley
The AI talent gap is massive—over 300,000 positions unfilled. Salaries are soaring, but the competition is fierce, and it's not easy to find peers in this field. Some claim that entry into the AI sector is nearly zero-based, with the potential to earn a high salary within just 90 days. With the rise of artificial intelligence, short-term training programs have become extremely popular, often costing between $20,000 and $30,000. These programs promise quick results, and their marketing strategies always highlight the high salaries as the main selling point.
In the past year, the rapid growth of the AI industry has led to a severe shortage of skilled professionals, pushing salaries to unprecedented levels. The challenge now is not just attracting talent, but also retaining and managing it effectively.
From fresh graduates to top researchers, the demand for AI expertise is everywhere. According to Dr. Lin Hui, co-founder of a leading AI company, the annual salary for AI PhDs can reach around ¥500,000, while master’s degree holders earn between ¥250,000 and ¥350,000. This level of pay is comparable to what a mid-level software engineer earns after two to three years of experience. In October, his company successfully recruited over a dozen top graduates from prestigious universities like Tsinghua, Peking, and Fudan, many of whom were already receiving multiple job offers before graduation.
According to IDG Capital’s “2017 Internet Unicorn Remuneration Report,†senior AI roles offer 55% higher compensation than the industry average, with mid-level positions up by 90%, and junior roles up by 110%. The war for AI talent is intensifying, and companies are competing fiercely to secure the best minds.
Dr. Fang Mu, CTO of a robotics startup, recalls that five years ago, people joked about how hard it was to find AI experts. Now, the situation is completely different. She notes that even students who once struggled to find work in AI are now commanding impressive salaries, with no one able to match their earning potential.
The competition for AI talent isn’t limited to recent graduates. Senior professionals are also in high demand, with companies actively poaching talent from both other firms and academia. At this year’s Yunqi Conference, Alibaba Cloud’s chief scientist Qian Wanli revealed he had received over 700 recruitment emails in just one year.
To attract top talent, companies like Fluency have established AI labs in the U.S., aiming to recruit influential figures from both academic and industrial sectors. While China produces a large number of AI professionals, many of the leading experts are still based in the U.S. To bring them back, companies are investing heavily in local research centers.
Tencent recently appointed Dr. Yu Dong, a top expert in speech recognition, as deputy director of its AILab and opened a Seattle lab to attract global talent. These moves show that Chinese tech giants are competing on a global scale for AI innovation.
Headhunting firms have also jumped on the AI bandwagon, particularly targeting Silicon Valley talent. According to Riton Consulting’s Zhou Wei, a Ph.D. from Facebook with two to three years of experience can earn between $400,000 and $500,000 annually. Companies in China are offering 30% salary increases to lure these talents back.
AlexRen, founder of TalentSeer, says that technical leaders with 3–7 years of experience are the most sought-after. He estimates that an AI team of 5–10 people can cost between $250,000 and $350,000 per year, plus 20% bonuses. Unmanned vehicle experts, in particular, are highly competitive, often receiving four offers a week.
The "talent attracting talent" effect is becoming more evident. Hiring a high-profile leader can significantly boost a company’s ability to attract other top performers. However, recruiting top AI talent is a long and challenging process, often taking six months or more.
Headhunters must now deeply understand each candidate’s background, research, and industry connections. For example, AlexRen spent two months identifying nearly 40 experts in the autonomous vehicle space, engaging in detailed technical discussions and mapping out industry relationships.
In 2018, many Silicon Valley professionals are returning to China, drawn by the country’s vast market, abundant data, and strong government support. As Lin Hui, a Google alumnus, explains, China’s consumer data and engineering talent make it an attractive destination for AI researchers.
With AI placed at the national level, China has become the second-largest AI hub globally. From 2014 to 2016, China saw a surge in AI investment, accounting for 93.59% of total funding during that period. This growth has made AI a major focus for both startups and investors.
While attracting talent is difficult, retaining it requires more than just money. Recognition of a company’s mission and clear technical direction are crucial. Many AI professionals care about where they can apply their research and which industries they can impact.
Investors like Coco Capital emphasize the balance between technology and commercialization. They look for teams that can turn scientific breakthroughs into real-world applications. As Li Yukai of Coco Capital notes, scientists need to understand the risks of productizing their work and be ready to adapt to market needs.
The AI talent gap remains a critical issue, with supply far outpacing demand. LinkedIn’s 2017 report showed that the U.S. had over 850,000 AI professionals, while China had only 50,000, ranking seventh globally. In the U.S., the talent supply-to-demand ratio is about 1:3, but in China, it’s closer to 1:6 or even 1:10.
Despite these challenges, Chinese AI companies are valued two to four times higher than their U.S. counterparts. As the AI revolution continues, the race for talent shows no signs of slowing down.