Ex-Apple CEO Says OpenAI Is Apple’s First Real Competitor in Decades

John Sculley, who led Apple from 1983 to 1993, has made headlines by stating that OpenAI is the first real competitor Apple has faced in many decades. His comments came during the Zeta Live conference in New York City.

Sculley’s argument is that the rise of artificial intelligence, especially AI that acts as agents rather than static tools or apps, marks a paradigm shift. In his view, Apple has lagged behind in this transformation.

What Sculley Means by “First Real Competitor”

Here are some of his main points:

• Weakness in AI for Apple: Sculley said that “AI has not been a particular strength” for Apple. He cited Apple’s slower movement in delivering AI-focused product updates and innovations, especially compared to OpenAI and other big tech companies.
• Delayed Projects: He noted delays in updating or overhauling Siri, Apple’s voice assistant, and that Apple’s approach to AI has often lagged behind rising expectations.
• Shift from Apps to Agents: Sculley emphasized that the world is moving from the “apps era” — where each app has a fixed function — to an “agentic era,” where intelligent agents perform complex tasks on behalf of users. He believes Apple needs a CEO who can guide the company through that transition.
• OpenAI’s Strengthened Position: Part of what gives Sculley confidence in OpenAI as a competitor is its direction in software and hardware. He referenced OpenAI’s acquisition of Jony Ive’s startup, signalling that design — Apple’s hallmark — could be part of OpenAI’s strategy going forward.

Implications for Apple and the Industry

Sculley’s comments are more than just provocative—they point to several strategic challenges and opportunities for Apple:

1. Urgent AI Strategy Overhaul: Apple may need to accelerate or rethink its AI roadmap, especially in terms of launching products, improving AI assistants, and integrating generative/agent-based intelligence into its devices.
2. Leadership Considerations: Given the pace of the AI race, Sculley suggests that Apple’s next CEO should be someone equipped to lead this transformation. He implies that the current model may not be sufficient in an AI-centric future.
3. Competition Beyond Hardware: For years Apple’s strength was hardware design, tight integration of hardware and software, and its app ecosystem. But in the new era, AI companies like OpenAI could threaten that edge by combining software intelligence, design, and possibly AI-centric devices.
4. Business Model Shifts: Sculley pointed out that AI-driven agents may push business models toward subscription services rather than one-time product sales, which could alter the economics for Apple.

But There Are Counterpoints & Challenges

While Sculley’s perspective is influential, there are things to consider:

• Apple’s strengths still matter: Apple still has strong advantages in hardware, brand loyalty, privacy, ecosystem control, and device experience. These aren’t trivial to out-do.
• Risk of hype vs execution: OpenAI has made strong moves, but success in AI hardware design or full agentic AI deployment is complex and costly. Execution matters.
• User trust and privacy: Apple has a certain level of user trust around privacy and security, which could be a differentiator if it leverages it properly while improving its AI capabilities.
• Time lag in AI adoption: Even with strong AI platforms, many users and markets are still adapting. The transition from apps to agents will take time, infrastructure, and ecosystem changes.

What This Means Going Forward

• Watch for Apple’s AI announcements: New developments from Apple in AI, especially around Siri, device-embedded AI, or hardware collaborations, will be under scrutiny.
• Monitor OpenAI’s hardware plans: The acquisition of Jony Ive’s startup suggests OpenAI is preparing for devices that merge design and AI in ways that could challenge Apple’s strong suit.
• Leadership changes: Any change at the top of Apple could signal the direction the company takes in AI. Sculley’s comments suggest that leadership willing to embrace the “agentic era” will be critical.
• AI agents & subscription models: If Sculley is right, many companies including Apple will see pressure to offer AI-based services in subscription formats, with agents that can automate workflows rather than just apps.

Verdict

John Sculley’s claim that OpenAI is Apple’s first real competitor in decades is bold, but not without merit. The competition landscape in AI is shifting rapidly. Whereas Apple once dominated via hardware & polished user interfaces, the rise of powerful, agentic AI threatens to change what users expect. If Apple adapts fast — in product strategy, leadership, business model — it can remain competitive. If not, OpenAI and companies with strong AI cores might increasingly erode Apple’s dominance in spaces that once seemed unassailable.