Apple Issues Retention Bonuses to Stop OpenAI Poaching

Apple Inc. issued rare, out-of-cycle retention bonuses to its iPhone Product Design team to combat an aggressive wave of poaching by artificial intelligence startups. These bonuses, provided as restricted stock units valued between $200,000 and $400,000, vest over four years to incentivize engineers to remain with the company.

The move follows a significant talent exodus to OpenAI, which has recruited several dozen Apple engineers. This effort is led by former Apple VP of product design Tang Tan, who now serves as OpenAI's chief hardware officer. OpenAI is reportedly developing a consumer AI device, supported by a partnership between Sam Altman and former Apple design chief Jony Ive to create AI-native hardware.

Other competitors, including Meta Platforms Incorporated and the startup Hark, have also targeted Apple's hardware talent. Some rivals are reportedly offering annual stock packages of approximately $1 million, making Apple's retention bonuses a fraction of the competing offers. The loss of talent is critical as Apple develops its own AI-driven hardware, including smart glasses, a Siri pendant, and camera-equipped AirPods, to maintain its ecosystem in the post-smartphone era.