tech

The Math Behind Silicon Valley's Millionaire Factory

How stock awards at OpenAI, Anthropic, and SpaceX grew into life-changing fortunes.

The Math Behind Silicon Valley's Millionaire Factory

TL;DR

  • Equity grants at frontier tech companies can grow into substantial wealth.
  • A SpaceX Software Engineer II offer from August 2022 included an equity grant potentially worth over $4 million at IPO valuation.
  • Engineers at Anthropic who joined in 2023 may have equity worth tens of millions of dollars.
  • Some 2022 and 2023 equity grants at OpenAI are now valued at over $50 million.
  • Factors like vesting, dilution, lockups, and taxes can reduce the actual employee payout.