Google’s Controversial Move: Paying AI Employees to Stay Idle Instead of Joining Competitors

In the competitive landscape of artificial intelligence (AI), retaining top AI talent has become increasingly challenging. Major players like Google, OpenAI, and others are engaged in fierce competition for skilled professionals, leading to unique strategies such as aggressive noncompete agreements.

Google’s DeepMind Implements Noncompete Agreements

According to Business Insider, Google’s AI division, DeepMind, has adopted “aggressive” noncompete agreements for some of its AI employees in the U.K. These agreements restrict staff from joining competitors for a period of up to one year.

Impact on AI Researchers

• Some affected employees receive compensation during this time, effectively serving as an extended period of paid time off (PTO).
• However, this practice can lead to feelings of isolation among researchers, who may miss out on the rapid advancements in the AI field.

Legal Landscape and Challenges in the U.S.

In the United States, the Federal Trade Commission (FTC) enacted a ban on most noncompete agreements last year. However, this ruling does not extend to DeepMind’s operations in London, allowing the company to maintain its current practices.

Voices from the AI Community

Recently, Nando de Freitas, the Vice President of AI at Microsoft, took to X (formerly Twitter) to express concern over the situation. He revealed that many DeepMind employees are reaching out to him “in despair” regarding their noncompete clauses:

“Dear @GoogDeepMind ers, First, congrats on the new impressive models. Every week one of you reaches out to me in despair to ask me how to escape your notice periods and noncompetes. Also asking me for a job because your manager has explained this is the way to get promoted, but…”

– Nando de Freitas (@NandoDF) March 26, 2025

Google’s Response and Future Implications

While Google did not provide a direct comment to TechCrunch, the company stated to Business Insider that it employs noncompete agreements “selectively.” This strategy raises questions about the future of talent retention in the AI industry.

As the competition for AI professionals intensifies, companies may need to reconsider their approaches to retain top talent. For more insights into the evolving landscape of AI and talent management, visit our AI Talent Management page.

For further reading on noncompete agreements and their implications in the tech industry, check out this Business Insider article.