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US AI startups pay engineers 4 times more than European ones, and the reason has nothing to do with talent

Tech Funding News Sofia Chesnokova Covered by 6 sources

Software engineers at US AI startups earn significantly higher salaries than their European counterparts, with Anthropic paying engineers a median of $746,000 versus $176,000 at Stockholm-based Lovable. This 4.2x wage gap reflects differences in funding levels and market valuations rather than talent quality or technical ability. The disparity means US companies can attract and retain engineering talent more easily through compensation alone, creating a structural advantage in the competitive AI labor market.

Why it matters

Software engineers at Anthropic earn a median salary of $746,000, with top offers reaching $1.25 million. At Lovable,…

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