San Francisco, CA Chungin "Roy" Lee, CEO and co-founder of the AI startup Cluely, has publicly challenged conventional startup compensation wisdom by announcing base salaries of up to $1 million for software engineers and $250,000 to $350,000 for designers. The move, articulated in a recent social media post, positions Cluely at the forefront of the escalating talent war within the artificial intelligence sector, aligning its strategy with tech giants like Meta.
In a tweet, Roy stated, > "startup 'truth' i disagree with: don't pay high cash comp. we now pay 250k-350k base for designers and 300k-1m base for software engineers. thread on why everyone is wrong (except me and zuck):" This direct challenge underscores Cluely's aggressive approach to attracting "world-class" talent.
Cluely, which recently secured a $15 million funding round led by Andreessen Horowitz (a16z) in June 2025, is channeling significant capital into human resources. The company, known for its controversial "cheat on everything" AI tool, aims to build a lean yet highly skilled team capable of rapid innovation in the competitive AI landscape. This strategy prioritizes immediate cash rewards, potentially mitigating the perceived risks associated with early-stage startup equity.
The compensation figures announced by Roy reflect a broader trend in the tech industry, where specialized AI skills command premium salaries. While the average senior-level software engineer salary in 2024 was approximately $158,000, roles in AI and machine learning are seeing significant increases, with some expert-level positions reaching over $200,000. Companies are increasingly willing to pay top dollar for experienced AI talent, especially at senior levels, as indicated by recent salary trends for AI engineers.
Mark Zuckerberg, CEO of Meta Platforms, exemplifies this high-compensation philosophy. Meta has reportedly offered top-tier AI researchers total compensation packages of up to $300 million over four years, with some initial year earnings exceeding $100 million. These packages often include a mix of base salary, immediate stock grants, and substantial signing bonuses, demonstrating a willingness to invest heavily to secure leading AI minds.
This aggressive recruitment by companies like Cluely and Meta highlights the intense competition for AI expertise. As the demand for AI-related skills continues to surge across various industries, high cash compensation is emerging as a critical tool for attracting and retaining the most sought-after professionals, reshaping traditional startup compensation models.