Why would anyone consider a position that feels like a step back?

I’m currently a staff engineer at a mid-sized company with over 600 employees and more than eight years of experience. Recently, I was approached about a principal engineer role at an AI startup, which piqued my interest. After the initial screening call, they offered to move forward, but only for a senior position.

Given the tough job market right now, I understand the challenges—but I have a stable job with a likely higher salary as a staff engineer compared to what they’d offer for a senior role. Honestly, I find this offer a bit disrespectful; it feels like they don’t appreciate my experience since they reached out to me without my application. If they don’t see me as a good fit, I’d prefer they just say so.

So, I’m curious to hear from recruiters: why extend such an offer? And for my fellow engineers, what motivates you to accept a position that seems like a downgrade? Luckily, I’m not in a rush since I haven’t been laid off, so I’m genuinely interested in your thoughts.