Ex-Apple CEO John Sculley: OpenAI Is Apple’s First Real Rival in Decades

Former Apple CEO John Sculley has sparked conversation in the tech world, saying that OpenAI has emerged as Apple’s first real competitor in decades. The veteran executive, who led Apple from 1983 to 1993, believes that the Cupertino-based company is struggling to keep up in the artificial intelligence race, especially as the world transitions from traditional apps to intelligent, agent-based systems.

Speaking to a popular publication, Sculley remarked, “AI has not been a particular strength for them.” His comments highlight Apple’s relatively slow progress in integrating advanced AI features compared to players like OpenAI, whose ChatGPT ecosystem is rapidly evolving into an all-in-one digital assistant platform.

Despite Apple’s long-standing dominance in the smartphone market, its AI efforts—particularly the Apple Intelligence project—have reportedly faced multiple delays and technical setbacks. During Apple’s “Awe Dropping” event in September, the company made little mention of AI, signaling possible struggles in matching the pace set by rivals.

Sculley, who once helped popularise the Mac brand and previously created the famed “Pepsi Challenge” campaign before joining Apple, suggested that the company needs to make a bold pivot to stay relevant. He believes that the era of apps that defined the iPhone’s success is now being replaced by an agentic era—one powered by conversational AI systems capable of managing most digital interactions.

“In the agentic era, we don't need a lot of apps, it can all be done with smart agents,” Sculley explained. This marks a fundamental shift from the current app-based smartphone model, hinting that future devices may rely more on intelligent assistants capable of connecting services seamlessly.

Meanwhile, OpenAI has doubled down on agent-based technology, allowing ChatGPT users to handle a growing list of tasks—from online shopping to creative design through integrated tools like Canva—without leaving the chat interface. This integrated, conversational experience positions OpenAI as a strong player in the next generation of computing.

Adding to Apple’s challenge is the recent collaboration between OpenAI and Jony Ive, Apple’s legendary former designer. Earlier this year, OpenAI acquired Ive’s design startup for $6 billion, sparking speculation that the AI firm plans to develop its own hardware device. Ive, the creative force behind iconic products such as the iPhone and iMac, is reportedly working closely with OpenAI CEO Sam Altman on the project, although it has seen some delays.

Sculley believes this partnership could mark a defining moment for the AI industry. “If there's anyone who is probably going to be able to bring that dimension to the LLM, in this case OpenAI, it's probably going to be Jony Ive, working with Sam Altman,” he said.

As OpenAI pushes boundaries with intelligent agents and potential AI-powered hardware, Apple now faces the rare challenge of reinventing its innovation strategy to remain a leader in a rapidly evolving digital landscape.