The annual placement season at the prestigious Indian Institutes of Technology (IITs) is witnessing a dramatic power shift. This year, artificial intelligence (AI) startups, both from India and Silicon Valley, are decisively outbidding established corporate giants for the brightest engineering minds. They are offering compensation packages that reach astronomical figures, with some US-based roles crossing ₹2.6 crore annually. However, this gold rush comes with a significant caveat: these high-paying roles are few and far between.
The Startup Surge: Premium Pay for Niche AI Skills
A detailed review of over 300 job descriptions shared with IITs reveals the stark contrast in offerings. Startups like Javis, Abacus AI, and Auxo AI are extending annual packages in the range of ₹39 lakh to ₹60 lakh for specialized roles in voice AI, multimodal engineering, and core machine learning development.
For instance, Mumbai-based Javis has increased its packages by up to 40% to attract talent for roles like voice AI engineer and ML engineer specializing in computer vision. "Our hiring drive reflects our commitment to innovate and lead in this rapidly evolving landscape," said Amanpreet Singh, a founding member of the AI firm.
The most eye-catching offers are coming from US-based firms recruiting for their offices abroad. California-based AI company Giga is scouting for software engineers for its San Francisco office with a total package expected to be around $210,000 (over ₹2.66 crore), which includes stock options and an annual bonus. For remote roles based in India, Giga is offering ₹25-45 lakh with a minimum ₹10 lakh bonus.
Another San Francisco firm, Abacus AI, which is hiring software and ML engineers to work remotely from India, may offer ₹50-60 lakh in annual compensation. "These roles are very core to the tech we are building in an extremely competitive AI/ML space," explained Manish Vora, an IIT Bombay alumnus heading the firm's India operations.
Established Players Lag in Salary but Lead in Scale
In sharp contrast, legacy corporations and IT services majors are offering significantly lower compensation for AI-linked positions. Established firms like BlackRock, IndiGo, and major FMCG companies are offering packages in the ₹16 lakh to ₹35 lakh range for similar AI and data science roles.
Asset manager BlackRock is looking for data analyst engineers for its Gurugram and Mumbai offices with an expected compensation of ₹22 lakh. Interglobe Aviation, IndiGo's parent company, is hunting for AI engineers with an offer around ₹16.5 lakh. FMCG leader Hindustan Unilever Ltd's leadership programme offers over ₹35 lakh for candidates skilled in creating AI-led forecasting tools.
However, the traditional IT services sector continues to hire at a massive scale, albeit at much lower pay grades compared to the AI startup cohort. Firms like Tata Consultancy Services, Infosys, and Wipro plan to hire tens of thousands of freshers in the 2025-26 period, but their compensation levels are not in the same league as the niche AI startups.
Quality Over Quantity: The Startup Hiring Philosophy
Recruitment experts highlight the fundamental difference in hiring strategy. Kamal Karanth, co-founder of specialist staffing firm Xpheno, notes that startups typically hire just one or two students for highly niche roles, while traditional firms recruit in bulk.
"Startups value fresh talent because they bring a fresh pair of eyes, especially in implementing AI-led solutions," Karanth said. He added that while there isn't a large pool of ready-made AI talent, young recruits from IITs tend to learn faster than experienced professionals.
This sentiment is echoed by startup founders. Deepesh Hiran, Managing Director heading India operations for Auxo AI, stated, "Our focus on AI engineering hiring at IITs is not about chasing a trend; it is about building the core engine of our business." Auxo AI is offering a package slightly above ₹27 lakh with substantial retention and performance bonuses for engineers in its India office.
The trend underscores a broader shift in the tech industry's focus towards curated, specialized AI services rather than generic software solutions. This shift is creating unprecedented opportunities for nimble, AI-native companies to attract top-tier talent, even if it means paying a premium and hiring in small numbers. For IIT graduates, the choice is increasingly between high-risk, high-reward startup roles and the stability and scale of traditional corporate careers.
