The Pulse #111: Did Automattic commit open source theft?
The maker of WordPress took 2M customers from its biggest rival: has a red line been crossed? Also: OpenAI’s impossible business projections, top AI researchers making more than engineers, and more.
The Pulse is a series covering insights, patterns, and trends within Big Tech and startups. Notice an interesting event or trend? Send me a message.
Today, we cover:
Industry pulse. Sudden layoffs at Meta, Spotify confirms work-from-anywhere, US mandates “click-to-cancel,” a historic SpaceX booster catch – and more.
Did Automattic commit open source theft? The maker of WordPress took a plugin with 2M installs, owned by its biggest competitor (WP Engine), and commandeered it. The goal was clear: hit WP Engine where it hurts the most, throwing decades of open source ethics in the bin. It sets a dangerous precedent for the industry. Read the un-paywalled version of this section here.
OpenAI’s impossible business projections. According to internal documents, OpenAI expects to generate $100B in revenue in 5 years, which is 25x more than it currently makes. This would mean OpenAI brings in more money than NVIDIA or Tesla!
Top AI research scientists earn more than engineers. Few companies can compete with the compensation which AI startups pay ML engineers. Still, research scientists at these startups can make roughly double of the highest-paid ML engineers. It’s an interesting new dynamic.
1. Industry pulse
Sudden layoffs at Meta
Meta is executing layoffs in the US inside WhatsApp, Instagram, and Reality Labs groups, as reported by The Verge. A prolific person let go in this round is security engineer Jane Manchun Wong, who became known in tech circles by uncovering new features shipped in Big Tech mobile apps hidden behind feature flags.
Elsewhere at Meta, there were layoffs for unusual reasons a week or two ago, when some people were let go from the social media giant’s LA site for misusing $25 meal credits intended for use when working late in the office. Instead, the vouchers were used to have meals delivered to homes, and spent on things like wine glasses and laundry detergent, as per the Financial Times. The FT reports that dismissals were for repeat incidents.
This kind of firing would probably not happen a few years ago, I suspect. Back when companies like Meta were struggling to hire enough talent, violations like misusing meal vouchers would likely have resulted in a warning, and no more.
It’s interesting to contrast that Meta had zero mass layoffs for the first 18 years of its existence from 2004 until November 2022. Since then, cuts have been regular but unpredictable in their timing. This story is a reminder just how much Big Tech is changing: companies no longer offer the kind of cozy job security that was taken for granted in the 2010s; even Google is no longer a “rest and vest” type of place.