Rising Competition for Talent in Self-Driving Vehicle and Physical AI Sectors

Mon, 13 Apr 2026 01:35:00 +0200

The self-driving vehicle industry is experiencing a fierce competition for talent, with base salaries for engineers reaching $300,000 to $500,000, excluding equity and benefits. Startups and automakers developing autonomous vehicles are facing pressure as employees are being lured to the broader 'physical AI' sector, which includes robotics, defense, and industrial automation. The ideal candidates are skilled in both AI and robotics, able to integrate AI into hardware like humanoid robots, autonomous forklifts, and equipment used in construction, mining, and agriculture. Defense technology startups offer the most generous compensation due to substantial Department of Defense funding. The talent shortage is unlikely to impact Waymo significantly, but startups and automakers may struggle to retain engineers, potentially triggering a funding and strategic rethink. Additionally, venture firms like Eclipse are investing heavily in physical AI, including a new $1.3 billion fund to incubate e