About seven years ago, competing with Waymo for self-driving vehicle (SDV) talent was like a knife fight. Now, the battle has escalated into an all-out poaching war, pushing base salaries to between £300,000 and £500,000.

The buzzy physical AI sector, involving robotics and defence tech companies, is luring away skilled engineers from SDV companies developing self-driving trucks and robotaxis. These employees are increasingly attracted to better-paying opportunities in defence tech.

A founder highlighted that the ideal candidate for an autonomous vehicle company should have hybrid skills combining classical robotics with advanced AI knowledge. This unique blend of expertise has prompted intense competition among companies, including automakers and startups, who must raise salaries or risk losing talent.

Defence tech startups are currently leading in compensation, thanks to generous funding from the Department of Defense. Positions such as applied researcher or AI enablement engineer are highly sought after, driving up demand for skilled professionals.