Ex-Apple CEO Sculley: OpenAI Apple's Toughest Foe in Decades

John Sculley, Apple's CEO from 1983 to 1993, declared OpenAI the company's 'first real competitor' in many decades during a Zeta Live conference interview in New York on October 10, 2025. Speaking to Fortune's Diane Brady, the marketing veteran who once ousted Steve Jobs criticized Apple's lag in artificial intelligence, stating 'AI has not been a particular strength for them.' He pointed to OpenAI's lead in agentic AI—autonomous systems that act on user intent beyond traditional apps—as a pivotal shift threatening Apple's ecosystem.[1][2] Sculley's warning comes as the industry races toward AI-powered wearables, with OpenAI's subscription-based ChatGPT model challenging Apple's app-centric revenue streams. 'When we had apps at the center of everything, it was selling tools, selling products,' Sculley explained. 'When you think of subscription, it's about people paying for something as long as they need it.' This pivot underscores OpenAI's edge, where users pay recurring fees for ongoing AI services rather than one-time app purchases.[1] Apple faces added pressure from internal changes: CEO Tim Cook will transition to executive chairman, with COO John Ternus assuming the CEO role on September 1, 2026. Sculley discussed this succession on Fox Business, framing OpenAI's rise against Apple's storied history of iPhone-driven dominance since 2007. The iPhone maker, long insulated from peers, now grapples with AI rivals like OpenAI, which has surged with tools like GPT-4o and partnerships in wearables.[3][4] The broader AI wearable race intensifies competition, as OpenAI explores hardware integrations while Apple Intelligence rollout in iOS 18 and Vision Pro lags in agentic capabilities. Sculley's insights, echoed across outlets like India Today, signal a rare existential challenge for the $3.5 trillion company, whose services revenue hit $25 billion last fiscal year but trails AI subscription leaders.[2] Industry observers note Apple's response includes $500 billion in U.S. investments announced in February 2025 for AI chips and data centers. Yet Sculley's verdict lingers: OpenAI's innovation pace marks the first serious dent in Apple's armor since its early PC battles.[1][3]