Competition for key talent in the autonomous driving car industry is spreading to so-called “physical AI” fields such as defense and robotics. Base salaries have surged to as high as $500,000, or about 745 million won, adding to the burden on autonomous driving startups and automakers to retain workers, an analysis said.

U.S. tech media outlet TechCrunch reported on April 12 that talent movement centered on developers of autonomous trucks and robotaxis has recently accelerated. The industry said competition has intensified as defense technology companies and robotics companies move aggressively to secure engineers who combine traditional robotics skills with an understanding of artificial intelligence.

The profile companies want goes beyond a simple software model developer. Autonomous driving companies prefer hybrid engineers who can develop AI models and integrate them into real hardware. Capabilities to apply AI to humanoid robots, industrial robots and autonomous forklifts, as well as construction, mining and agricultural equipment, are emerging as a key competitive edge.

The compensation race is also heating up quickly. Defense technology startups are said to be offering the most aggressive pay packages. With U.S. Department of Defense funding behind them, demand for AI applied researchers and engineers has surged, leaving autonomous driving companies and automakers in a position where they may struggle to prevent talent outflows unless they raise pay.

The impact is not expected to be the same for all companies. The industry assesses that Waymo, which has funding capacity and a brand, is in a relatively advantageous position. By contrast, startups and some automakers that have continued large-scale investment in autonomous driving technology are likely to face sharply rising labor costs.

Capital markets are also responding to the trend. Unlike the past, when companies could raise investment with just the “autonomous driving” keyword, investor interest has recently shifted to broader physical AI spanning robotics, industrial automation and defense. Silicon Valley venture capital firm Eclipse Ventures decided to invest an additional total of $1.3 billion in the field.

Eclipse partner Jiten Behl (지텐 베흘) said no specific investments have been made yet, but plans to expand incubation have been confirmed. He said he was reviewing many “interesting ideas,” signaling expectations for the physical AI field.

The shift is also affecting the business environment of the autonomous driving industry. Startups face pressure to raise more money or operate existing funds more efficiently. Automakers are also reviewing long-term investment strategies as the cost of maintaining self-driving organizations rises.

In the autonomous driving market, business expansion and test operations are also continuing. Volkswagen unit Moia America and Uber are conducting self-driving microbus trials in Los Angeles, aiming for robotaxi commercialization by the end of 2026. Safety operators are on board in the early stage, and fully driverless operations are planned for after 2027. Waymo is also moving to get ahead by expanding robotaxi services for the general public in Nashville in the United States.

Ultimately, the competitive landscape in the autonomous driving industry is expanding beyond technology itself to talent and capital. Securing key engineers and the financial resources to support it are emerging as key variables that will shape the market.