The history of Route 128 and Silicon Valley shows founders why open networks, shared talent, and strategic rivals can build stronger companies over time.
Just how fierce is the AI talent war? AI labs are accusing one another of stealing trade secrets and luring talent away with $100 million hiring bonuses while losing veteran leaders to the bait of a once-in-a-generation goldrush. Competition is crazy at the moment, and other founders have noticed.
Increasingly, entrepreneurs tap me on the shoulder and whisper that they’re worried about AI companies poaching their people. These founders are concerned that their top talent, armed with AI tools, will start their own companies. They increasingly ask me about non-compete agreements and NDAs. Some companies are even discouraging employees from networking or banning executives from sitting on outside boards.
Nervous entrepreneurs are correct that we’re in a period of exceptional competition. But I worry about how some are responding to this reality. When competition is fierce, it’s natural to close ranks and get paranoid. But in my experience, the “kill or be killed” approach usually backfires. Treating rivals as “frenemies” to work with strategically is less intuitive but far more effective.
To illustrate the point, I always ask entrepreneurs the same question: Do you want to be Route 128 or Silicon Valley?
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What is Route 128?
Every time I ask this question, I get the same answer: What is Route 128? Unless you grew up in the Boston area (as I did) or were deeply involved in the tech industry in the 1960s through 1980s, you probably haven’t heard of the place formerly known as “America’s Technology Highway.” Trust me, Route 128 was once the hottest of tech hot spots.
A beltway around Greater Boston, Route 128 was home to the early computer chip development industry, along with defense firms, computers, and major electronics. The region contained an exceptional concentration of talent and technical know-how. But it also had a closed, competitive culture. Other companies were seen as the enemy. When the 1990s recession hit, the ‘Massachusetts Miracle’ sputtered out.
