Apple offers massive bonuses to stop top designers jumping to OpenAI

Apple has reportedly given big bonuses to its designers. It appears that the Cupertino giant is incentivising its hardware staff to stay at the company amid poaching efforts from companies like OpenAI. Former Apple chief designer Jony Ive has already brought in over 40 former Apple workers to the AI startup.

In Short

• Apple grants RSU bonuses to iPhone design team members
• Bonuses vest over four years and range from $200,000 to $400,000
• OpenAI has recruited over 40 former Apple employees for hardware roles

Apple is reportedly awarding big untimely bonuses to some of its staff members. The Cupertino giant is believed to be giving stock options to its design team worth as much as $400,000 (roughly Rs 3.76 crore), all in an effort to prevent them from joining companies such as OpenAI.

As per a report from Bloomberg, the bonuses are not part of the planned bonuses Apple employees get. These bonuses are provided as restricted stock units (RSUs), ranging from $200,000 (roughly Rs 1.88 crore) to $400,000 or even more, and will vest over a four-year period.

Why is Apple giving bonuses?

The report indicates that Apple is giving these rewards as the company faces pressure from rivals, including OpenAI, who are believed to be poaching its key designers. This has raised concerns among Apple executives.

Previous reports indicate that OpenAI has recruited over 40 former Apple employees for its hardware division, which is led by former Apple design chief Jony Ive.

However, it appears that the new bonuses still pale in comparison to the compensation OpenAI or other startups may offer to Apple designers.

OpenAI’s hardware team includes former Apple leaders like Tang Tan, who left in 2023 to become OpenAI’s chief hardware officer. The influx of ex-Apple staff is seen as a significant gain for OpenAI as it develops its first hardware products, expected possibly by the end of 2026.

This is not the first time

Apple has taken similar measures to retain talent in the past. Previously, the company offered bonus schemes in 2021 and 2022 to retain talent across silicon design, hardware, software, and operations amid poaching concerns.

The departures have raised challenges for Apple as it pursues its own AI-driven hardware projects. These include smart home devices, robotics, AI-powered AirPods with cameras, and smart glasses, led by John Ternus. The loss of experienced engineers could impact Apple’s progress in these areas.

John Ternus is also tipped to potentially succeed Tim Cook as Apple CEO when Cook eventually retires.

Apple is also working on making major inroads in the AI race. The Cupertino giant has signed a billion-dollar deal to use Google’s Gemini models to power Siri. As per reports, Siri could eventually be turned into an AI chatbot, similar to ChatGPT. The first iteration of Gemini-powered Siri may be showcased during Apple’s WWDC event later this year.

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