The people making the hiring decisions are providing high pay because if they don't, then the person they want to hire has the option of working elsewhere for high pay. The people accepting the high pay are able to get the high pay because they have the option of selling their labor to someone else who will give them high pay.

Price is based on supply and demand curves, and cost of living isn't directly a causal factor. If it is true that FAANG can keep printing money while hiring people willing to accept lower pay, then that will happen but it will be because the FAANG's prospective supply of labor would have increased.