Axon is said to vie with tech giants for scarce AI talent, turns to startups

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Axon Enterprise (AZON), the maker of Tasers, body cameras and other public safety technology, is ramping up efforts to secure artificial intelligence expertise as competition for talent reaches new heights. Despite its stock surging about 250% over the past two years, making it one of the S&P 500’s top performers, the company says it’s struggling to match the pay packages offered by major tech firm, Bloomberg News reported Wednesday.

President Josh Isner said Axon has doubled the size of its recruiting team over the past year to attract specialists who can help develop next-generation products. With tech giants like Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]), Alphabet (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) and Meta (META [https://seekingalpha.com/symbol/META]) offering massive guaranteed pay to strengthen their AI teams, sometimes in the hundreds of millions, Axon (NASDAQ:AXON [https://seekingalpha.com/symbol/AXON]) is leaning on alternative strategies.

Isner said hiring by acquiring AI startups, more for their people than their technology, is one strategy.

Even with generous stock-based compensation, Axon (NASDAQ:AXON [https://seekingalpha.com/symbol/AXON]) can’t match the financial incentives on offer from Big Tech. Instead, the company seeks candidates willing to accept less for the chance to work on technologies with direct societal impact.

To bolster recruiting, the Scottsdale, Arizona-based company plans to build employee apartments and recently opened a Boston office to tap into talent from Harvard and MIT. Still, Massachusetts’ so-called millionaires tax is making it harder to attract senior AI talent compared to states without income tax, such as Washington.

High hiring costs have also prompted Axon (AXON [https://seekingalpha.com/symbol/AXON]) to narrow its AI goals. The company plans to adapt existing AI products rather than build them entirely from scratch, with a focus on improving object recognition in video systems. Such tools could alert police and security teams to potential threats, like the recent Midtown Manhattan shooting.

Demand for Axon’s (AXON [https://seekingalpha.com/symbol/AXON]) public safety solutions has grown, especially from corporate clients. The company’s largest deal last year came from one of the world’s biggest logistics providers, marking a shift from its historically government-heavy customer base. Retailers are also emerging as a key growth area, with body cameras being tested by Walmart (WMT [https://seekingalpha.com/symbol/WMT]) to combat theft and protect employees, Bloomberg News reported.

MORE ON AXON ENTERPRISE

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* Axon Enterprise, Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4808554-axon-enterprise-inc-2025-q2-results-earnings-call-presentation]
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