Why would someone consider a role that feels like a step down?

I’m currently a staff engineer at a mid-sized company with over 600 employees and more than 8 years of experience. Recently, I was approached for a principal engineer position at an AI startup that piqued my interest. After our initial screening call, however, they offered me the opportunity to continue the process, but only for a senior engineer role.

I understand that the job market can be tough right now, but I have a stable position and likely earn a higher salary as a staff engineer than what they could offer me as a senior. Honestly, I find it a bit disrespectful to receive an offer like this—it feels as if they don’t value my experience or career trajectory. After all, they reached out to me, so if they think I’m not a suitable candidate, they could just let me know.

So, I have a couple of questions: To recruiters, why would you make such an offer? And to fellow engineers, what would motivate you to accept a position that seems like a demotion? Personally, I feel fortunate not to have been laid off, so I’m not in a rush to make a change.