In the high-stakes race for AI dominance, top companies like Google, OpenAI, and Microsoft are scrambling to hold onto their brightest minds. But Google’s AI research arm, DeepMind, is taking a controversial approach to retain talent and it’s not sitting well with everyone.
According to a recent report from Business Insider, DeepMind has been enforcing strict noncompete clauses on some of its U.K.-based AI researchers. These contracts can prevent employees from joining rival firms for as long as 12 months after leaving, even though they continue receiving pay during this “cooling off” period effectively turning it into an extended paid sabbatical.
While some might see this as generous, others feel stuck on the sidelines of one of the fastest-moving fields in tech. Being benched for a year can mean missing out on major breakthroughs and momentum in their careers, something AI researchers can’t afford when the landscape changes month by month.
This issue was highlighted by Microsoft’s Vice President of AI, Nando de Freitas, who posted on X (formerly Twitter) in March that DeepMind employees have been contacting him, desperate for advice on how to break free from their contracts. Some even say they’ve been told by their managers that switching companies is one of the few ways to get promoted in the AI world.
“Every week one of you reaches out to me in despair.” de Freitas wrote, offering a glimpse into the growing frustration within DeepMind.
In contrast, noncompete agreements have been largely banned in the U.S. since the Federal Trade Commission (FTC) issued a ruling in 2024 that restricts most forms of these agreements. However, since DeepMind is headquartered in London, U.K. law still permits them, and Google appears to be using that to its advantage — although the company claims it only applies these clauses “selectively.”
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The Bigger Picture
This drama reflects a broader challenge across the AI industry. With generative AI, foundation models, and robotics progressing rapidly, companies are competing not just with each other, but with the allure of startups, academia, and even self-funded ventures. Talented researchers now have more options than ever and they’re often looking for roles that offer freedom, impact, and recognition.
Additionally, there’s rising concern that rigid contracts like noncompetes could stifle innovation by locking top minds into corporate silos. If researchers can’t move freely between teams or companies, cross-pollination of ideas slows down, which could hurt the industry as a whole.
Some experts have called for more ethical and transparent hiring and retention strategies, like better compensation, clear growth paths, and collaborative research opportunities, rather than legal restrictions. Others warn that Big Tech’s grip on top AI talent may lead to further consolidation of power, limiting diversity of thought and access to advanced AI tools.
As AI continues to reshape industries and societies, how companies treat their people could end up being just as important as the tech they build.
