Groq’s CEO Jonathan Ross has unveiled an unconventional approach to employee compensation at his AI chip startup, emphasizing cash over equity until 2025. In a recent podcast appearance, Ross explained that the company is offering higher cash salaries instead of the traditional equity-heavy compensation packages common in Silicon Valley startups. This strategy aims to provide employees with immediate financial security while the company builds value. Ross believes this approach will ultimately benefit employees more than immediate equity grants, as the company’s valuation is expected to increase significantly by 2025. The decision stems from Ross’s experience at Google, where he observed that early employees often sold their shares too soon, missing out on substantial long-term gains. Groq’s strategy also includes plans to implement a more equitable distribution of equity among employees when they do begin offering shares. The company, which competes with Nvidia in the AI chip market, has gained attention for its LPU (Language Processing Unit) technology and claims to offer faster inference speeds than current market solutions. This compensation approach represents a significant departure from Silicon Valley norms and could influence how other AI startups structure their employee benefits. The strategy also reflects broader changes in the AI industry, where companies are increasingly focused on long-term value creation and employee retention rather than traditional startup equity models.