Despite OpenAI securing an initial Siri integration, Google's long-standing relationship with Apple won the more significant partnership. This shows that for AI model distribution, powerful incumbent relationships can be more decisive than speed, pressuring challengers like OpenAI to build their own hardware and distribution channels.

Leaks suggest OpenAI's first hardware device will be an audio wearable similar to AirPods. By choosing a form factor with proven product-market fit and a massive existing market ($20B+ for Apple), OpenAI is strategically de-risking its hardware entry and aiming for mass adoption from day one.

The true challenge for the rumored OpenAI hardware isn't production, but breaking through Apple's powerful ecosystem effects, particularly iMessage integration. User adoption of a new, screenless form factor is another major, unsolved problem that has stumped previous startups.

By integrating Google's Gemini directly into Siri, Apple poses a significant threat to OpenAI. The move isn't primarily to sell more iPhones, but to commoditize the AI layer and siphon off daily queries from the ChatGPT app. This default, native integration could erode OpenAI's mobile user base without Apple needing to build its own model.

Apple is avoiding massive capital expenditure on building its own LLMs. By partnering with a leader like Google for the underlying tech (e.g., Gemini for Siri), Apple can focus on its core strength: productizing and integrating technology into a superior user experience, which may be the more profitable long-term play.

OpenAI isn't just hiring talent; it's systematically poaching senior people from nearly every relevant Apple hardware department—camera, silicon, industrial design, manufacturing. This broad talent acquisition signals a serious, comprehensive strategy to build a fully integrated consumer device to rival Apple's own ecosystem.

While critics say Apple "missed AI," its strategy of partnering with Google for Gemini is a masterstroke. Apple avoids billions in CapEx, sidesteps brand-damaging AI controversies, and maintains control over the lucrative user interface, positioning itself to win the "agent of commerce" war.

Apple's partnership with Google for Siri was less about Google's technological superiority and more a strategic move to avoid empowering OpenAI, which is increasingly becoming a direct competitor in consumer hardware like smart glasses and audio devices. Giving OpenAI access to Apple's ecosystem would train a future rival.

A growing movement in the startup community involves not using OpenAI's API. Founders fear OpenAI, in its push for revenue, will release services that directly compete with and kill startups built on its platform, similar to Microsoft's historical "embrace, extend, extinguish" strategy.