Sam Altman Makes a Bold Claim: Apple, Not Google, Is OpenAI’s Biggest Rival
OpenAI CEO Sam Altman made striking remarks during a private lunch with journalists in New York, revealing that he sees Apple—not Google—as OpenAI’s biggest long-term competitor. According to The Wall Street Journal, Altman argued that the future of artificial intelligence competition will be decided not by software alone, but by devices and hardware ecosystems.
These comments came shortly after Altman issued an internal “code red” directive, ordering OpenAI employees to pause side projects for eight weeks and focus entirely on strengthening ChatGPT, as competitive pressure—especially from Google—continues to intensify.
Altman also suggested that the tech industry has fundamentally misunderstood OpenAI’s real competitive landscape. He stated that today’s smartphones are “not built for AI companions” and emphasized that the next major leap in artificial intelligence will be driven by device-centered experiences rather than purely app-based solutions. This vision represents a significant strategic pivot for OpenAI, which has reportedly shelved ambitious projects such as its Sora video generator in favor of more mass-market, hardware-driven products.
One of the most notable developments has been OpenAI’s aggressive talent acquisition from Apple. According to Bloomberg, OpenAI has hired more than 40 Apple hardware engineers in just the past month, spanning expertise in camera systems, wearables, robotics, and audio technology.
A major milestone in this hardware push was OpenAI’s $6.5 billion acquisition of io in May, the AI device startup co-founded by legendary designer Jony Ive, along with former Apple executives Tang Tan and Evans Hankey. Ive stated that the team has already generated “15 to 20 highly compelling product ideas” and aims to launch their first devices by late 2026, describing the prototypes as “elegant, beautiful, and playful.”
Meanwhile, Apple’s AI division has been significantly impacted by recent departures. Ruoming Pang, the leader of Apple’s 100-person foundation models team, left for Meta in July with a compensation package reportedly exceeding $200 million. In October, Ke Yang, senior director overseeing Apple’s AI search initiatives, also moved to Meta. Following these losses, Apple has reportedly begun testing Google’s Gemini model to power delayed Siri upgrades now expected in 2026, and is said to be exploring a deal worth around $1 billion per year for access to the 1.2 trillion-parameter model.
Altman’s declaration that Apple is the true long-term rival now appears less like a soundbite and more like a clear reflection of OpenAI’s evolving, device-first strategy.
