For months, the tech world expected OpenAI to be the primary “brain” behind the next generation of Siri. However, as of January 15, 2026, reports from the Financial Times and The Information confirm that OpenAI intentionally chose to sit out the deal. Instead of becoming a background vendor for the iPhone, OpenAI is reportedly pivoting to build its own independent AI hardware to compete directly with the tech titans.
The Strategy: From Partner to Rival
The “conscious decision” to walk away from the Siri contract—estimated to be worth up to $5 billion annually—was driven by OpenAI’s ambition to control its own ecosystem.
- The Hardware Push: Led by former Apple design legend Sir Jony Ive, OpenAI is deep in development of a dedicated AI device. Internal sources suggest OpenAI felt that a deep Siri integration would have turned them into a “utility provider” rather than a platform owner.
- Talent Poaching: Tensions have flared as OpenAI has been poaching Apple hardware engineers “left and right” to staff its secret device project.
- Legacy Concerns: A source close to OpenAI characterized the Apple-Google deal as “two legacy players coming together,” suggesting OpenAI views its own future technology as fundamentally different from the smartphone-centric model.
The Winner: Google’s $4 Trillion Moment
OpenAI’s withdrawal left the door wide open for Google. On January 12, 2026, Apple and Google announced a multi-year deal that makes Gemini the foundation for “Apple Foundation Models” and the new Siri.
| Aspect | OpenAI (Original Plan) | Google Gemini (The New Deal) |
| Role | Primary Siri Intelligence | Primary Foundation Model |
| Financials | Negotiated / Withdrawn | Est. $1B – $5B Annually |
| Relationship | Strategic Rivalry | Long-term Financial Synergy |
| Current Status | Optional “Fallback” for complex tasks | Default Intelligence Layer |
Is OpenAI Replaying the “Netscape” Scenario?
Some analysts are skeptical of OpenAI’s decision. By forgoing the distribution of 2 billion active Apple devices, OpenAI risks losing the “distribution war” to Google.
- Revenue Risk: With a $14 billion annual loss, walking away from a multi-billion dollar Apple contract is a massive financial gamble.
- The “Netscape” Warning: Analysts warn that OpenAI could become a pioneer that gets crushed by the distribution power of integrated giants like Google and Apple.
Conclusion: The “Hardware War” of 2026
OpenAI’s refusal to play second fiddle to Siri marks the official beginning of the AI Hardware War. By choosing to build its own device with Jony Ive rather than powering the iPhone, OpenAI is betting that the next era of computing won’t happen on a smartphone at all. Whether this “conscious decision” is a stroke of genius or a fatal strategic error will likely be decided by the launch of OpenAI’s first physical device later this year.
