It seems that Apple has decided that the language of money is the only one understood when facing the temptations of AI companies trying to poach its geniuses. Recent reports have revealed that the Cupertino-based tech giant has begun granting exceptional and unusual bonuses to iPhone hardware designers in a desperate attempt to stop the mass exodus of engineers and designers toward startups, led by OpenAI. As the race toward AI-powered devices accelerates, Apple finds itself forced to defend its human fortress at any cost.
Bonuses Outside the Regular Schedule
According to a report from Bloomberg, Apple distributed Restricted Stock Units (RSUs) this week to selected members of the iPhone product design team. These bonuses ranged in value between $200,000 and $400,000—significant amounts even for Silicon Valley engineers. Interestingly, these bonuses came “off-cycle,” meaning they were not part of the planned annual bonuses but rather an immediate response to an internal emergency.
These shares will not vest immediately; employees must remain with the company for four years to fully cash them out, a classic strategy to tie employees to the company for as long as possible. The product design group, overseen by Richard Dinh within the hardware engineering division led by John Ternus, is responsible for the geometry and vital functions of Apple’s flagship devices, and losing any member of this team means stalling the company’s gears of innovation.
The Ghost of OpenAI and Jony Ive Haunts Cupertino
The anxiety in Apple’s halls did not come from nowhere; the fierce competitor this time is OpenAI. The painful blow is that OpenAI’s hardware division is led by Tang Tan, a former Apple veteran who managed the same iPhone product design team now receiving the bonuses. Tang Tan did not leave alone; he took with him dozens of engineers who worked on the development of the iPad, Apple Watch, and Vision Pro.
To make matters worse, OpenAI has enlisted the help of former Apple design legend Jony Ive to assist in developing a secret consumer AI device. It seems OpenAI does not just want to build language models; it wants to build devices that could threaten the throne of the iPhone itself in the future, and there is no one better than Apple’s own engineers to carry out this mission.
War of Attrition and New Competitors
OpenAI is not the only threat; other startups have entered the fray, such as Hark, founded by Brett Adcock. This company has already successfully attracted engineers from Apple, such as Obeid Chowdhury, an industrial designer who worked on the upcoming iPhone 17 Air, in addition to other engineers like Jack McCambridge and Alex Gold.
Although Apple’s $400,000 bonuses seem huge, they remain modest compared to what competitors are offering. Some reports indicate that AI companies are offering talented engineers packages worth up to $1 million annually in stock to convince them to leave. It is a true war of attrition for talent, and Apple is trying to hold on with all the financial strength it can muster.
Apple Responds with Its Own Devices
This talent drain comes at a critical moment for Apple, as the company works hard to catch up in the field of generative AI. While others are trying to build alternative devices to the iPhone, Apple is working on an arsenal of new AI-powered devices to protect its ecosystem. Current projects include AirPods equipped with cameras, a screenless smart pendant, and smart glasses powered by visual intelligence.
Apple is no stranger to these tactics; it used similar bonuses three years ago and increased salaries for its AI model team last year to counter offers from Meta and Google. Now, as Apple approaches its 50th anniversary next month, the company seems determined to keep its best minds within its walls, rather than in the offices of its competitors.
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