[jltsiren]

There are many research institutes in the world with all kinds of funding arrangements. Also, Arc is apparently attempting to recreate the usual "middle manager" structure:

> Phase 1 of the institute involves hiring 10–15 Core Investigators, each of whom may employ 10–20 trainees, researchers, or engineers.

Those are large groups by academic standards.

The middle manager structure itself arises from many causes. Funders like competitive grants, because that gives them more control over the research they fund. Universities are in the business of training the next generation of researchers. And universities save money by hiring dedicated teachers instead of professors, leaving a smaller number of research-active people in charge of the trainees.