Big Tech vs Startups: Which Path Should New Grads Take? Insights from an OpenAI Engineer
The Indian Express1 week ago
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Big Tech vs Startups: Which Path Should New Grads Take? Insights from an OpenAI Engineer

Career Growth
career
tech
startups
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Summary:

  • AI is reshaping entry-level tech jobs, with big tech firms and startups hiring fewer recent grads in 2024

  • Janvi Kalra (OpenAI) advises interning at both big tech and startups to understand the pros and cons of each

  • Big tech offers financial stability, prestige, and scale, while startups provide hands-on experience and greater responsibility

  • New grad hiring dropped to 7% at big tech firms and under 6% at startups in 2024, per SignalFire data

  • Kalra’s key takeaway: Diversify early career experiences to make an informed choice

Big Tech or Startups? The Career Crossroads for New Grads

Many young college graduates, especially in India, dream of becoming software engineers. But a critical question looms: Should they start their careers at a big tech company like Google or Microsoft, or take a risk with a startup like OpenAI?

Janvi Kalra, a technical staff member at OpenAI, suggests that interning at both types of companies can provide invaluable insights. On The Pragmatic Engineer podcast, Kalra emphasized the importance of diversifying experiences early in one's career to understand the pros and cons of each path.

The Impact of AI on Entry-Level Jobs

Kalra's advice comes at a time when AI is reshaping entry-level tech jobs. According to SignalFire, a VC firm analyzing LinkedIn data, major tech companies like Meta, Microsoft, and Google hired fewer recent graduates in 2024 compared to previous years. New grads made up just 7% of new hires in 2024, down from 25% in 2023 and over 50% from pre-pandemic levels in 2019. Startups also saw a decline, with new grad hiring dropping from 30% in 2019 to under 6% in 2024.

The Upsides of Big Tech

Kalra, who interned at Microsoft and Google before joining OpenAI, highlights several benefits of starting at a big tech firm:

  • Financial stability and higher pay
  • Prestige and career weight (e.g., being an "L5 Google engineer" carries more clout)
  • Opportunity to build software at scale
  • Less pressure and more time to focus on projects

"It’s very different to build something that works versus something that works when it’s swarmed with millions of requests," she noted.

The Appeal of Startups

On the other hand, startups offer:

  • Hands-on experience building software from scratch
  • Exposure to diverse roles (e.g., front-end development one quarter, Terraform the next)
  • Greater responsibility and agency
  • Direct impact on the company’s success

"You get the opportunity to propose ideas that you think would be impactful for the business and go execute on it," Kalra added.

The Verdict? Try Both

Kalra’s ultimate advice: Gain experience in both environments to make an informed decision. "It would be more educational to do one startup internship and one Big Tech internship to get a very robust overview," she said.

Big Tech vs Startups

There might be upsides to working at both a big tech firm and startup. (Image: Unsplash)

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