Apple awards $200K-$400K bonuses to iPhone designers as AI startups poach talent

Apple awards bonuses to iPhone designers amid AI startup poaching - Bloomberg By Investing.com

Investing.com -- Apple Inc. (NASDAQ:AAPL) awarded rare bonuses to iPhone hardware designers this week in an effort to stem departures to AI startups like OpenAI that are building their own devices. The company granted out-of-cycle bonuses worth several hundred thousand dollars to many members of its iPhone Product Design team, according to a report Thursday from Bloomberg News, citing people with knowledge of the matter. Apple's leadership has grown concerned about the number of engineers being poached by potential rivals. OpenAI, which has tapped former Apple design chief Jony Ive to help design a new generation of AI-centric products, has emerged as a threat. The bonuses were issued as stock units that vest over four years, meaning employees must remain at Apple to receive the full value, said the people, who asked not to be identified because the move was not public. In many cases, the awards are worth roughly $200,000 to $400,000 over the full vesting period. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Apple is offering up to Rs 3.7 crore bonus to stop design engineers from moving to OpenAI: Reports

The move comes as Apple ramps up its AI ambitions, including a reported Google Gemini integration for Siri. Apple has reportedly rolled out big stock-based bonuses for members of its iPhone product design team as it wants to retain key talent amid increasing competition from rivals like OpenAI. As per a report by Bloomberg, the company has granted restricted stock units (RSUs) worth several hundred thousand dollars to select employees, with payouts linked to long-term retention. The stock awards, estimated to range between $200,000 and $400,000 (roughly Rs 1.88 crore to Rs 3.76 crore), will vest over a four-year period. This means employees must remain in the company to fully benefit from the incentives, effectively tying compensation to retention. The move comes as Apple faces growing concerns about talent attrition, particularly from OpenAI, which has been actively recruiting experienced engineers and designers. According to reports, more than 40 former Apple employees have joined OpenAI's hardware-focused initiatives, including senior figures who worked on products such as the iPhone, iPad, Apple Watch and Vision Pro. Notably, former Apple design chief Jony Ive is also linked to OpenAI's hardware ambitions. Also read: Google introduces Gemini 3.1 Flash Live AI model: Check features and availability This is not the first time Apple has offered financial incentives to retain employees. Similar stock-based incentives were reportedly offered in 2021 and 2022 across multiple divisions, including silicon engineering, software, and operations, during a time of increased competition for skilled professionals. This comes as reports suggest that Apple is working on a variety of AI-powered products, including smart home devices, robotics, and advanced wearables, as well as exploring deeper integration of AI into its ecosystem. Apple recently announced a collaboration with Google to integrate Gemini models into Siri, transforming it into a more advanced conversational platform. It is expected to debut alongside iOS 27 and possibly with the iPhone 18 Pro series.