AAPL vs. OpenAI: Which Firm Will Lead in AI in 2027?

It may not seem to make a whole lot of sense to compare Apple (NASDAQ:AAPL), a company that’s “behind” in the AI race, to OpenAI, a firm that kicked off the race close to three years ago with the release of ChatGPT. Undoubtedly, Sam Altman’s OpenAI has seen its valuation swell despite its partnership with Microsoft (NASDAQ:MSFT) running into a few bumps over the past few quarters. And while OpenAI’s latest major release, ChatGPT-5, appeared to have been a fumble of sorts, I certainly wouldn’t bet against the GPT maker as it looks to keep its foot on the accelerator to stay ahead of rising threats in the AI scene, most notably Alphabet (NASDAQ:GOOG), with its fast-rising Gemini model.

With Apple’s former chief design officer, Jony Ive, hard at work on a new AI product over at OpenAI, questions linger as to whether OpenAI has what it takes to leverage its current AI edge to disrupt the legendary iPhone. Not much is known about what Altman and Ive are working on, but I wouldn’t be all too worried if I were Apple CEO Tim Cook, especially now that shares are looking to make up for a “lost year.”

For now, the Apple AI criticisms may be somewhat warranted, but the headlines are getting old. I believe it’s way too early to count Apple out, as the AI race may very well be won by the slow, steady mover that strives to avoid too many bumps. Personally, I think investors should give Apple at least two years to prove it can catch up in AI. Not only do I think it’ll catch up, but I view the firm as best-equipped to make a massive profit at the hands of personalized AI.

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Does Apple Have What It Takes to Close the AI Gap?

If you haven’t yet had the chance to read the “AI 2027” paper, I’d encourage you to do so. It sheds light on two scenarios that could play out as the AI race goes into overdrive. As AI firms collab on safety, I do think that we’re closer to reaching a “slowdown” scenario, rather than the horrid one that doomsdayers think we’re in for.

With safety, security, and privacy at the core of Apple’s AI strategy, I view the firm as poised to narrow the gap with its AI rivals in such an AI slowdown scenario. Of course, the hot topic is that Apple has lost so much AI talent at the hands of rivals. While losing smart AI researchers isn’t ideal, I believe that Apple’s AI strategy is a key source of its strength.

Indeed, sit back and let others make the mistakes while Apple learns, improves, and betters the competition. Some argue there’s no time to do so in the AI race. This might be the case in an AI speed-up scenario where superintelligence arrives sooner rather than later.

That said, I have faith in CEO Tim Cook. He’s a brilliant leader, and I’m confident in the direction he’ll take Apple in AI. Cook and company have thought things through, and I think they’ve considered just about every scenario while allowing enough agility to change things up on the fly.

Don’t Bet Against Tim Cook in the AI Race

Investors have been profoundly rewarded for putting their trust in Tim Cook and his team. And I think he’ll be right again, as Apple looks to show the world where the profits are to be had in an environment where AI efforts aren’t exactly paying the bills quite yet. Apple is an AI innovator, but it’s also about making smart investments. It’s a delicate balance to make as the hyperscalers are spending money hand over fist.

As Apple nudges suppliers to adopt automation and robotics to maintain contracts, I view Apple as having a ton of leverage as it looks to benefit from the embodied AI revolution. Indeed, more than half of iPhone assembly could be assembled in five years from now. And it won’t be Apple that’s putting up the entire bill. However, it’ll be sure to benefit on the front of margins as Apple suppliers up their game.

Can Apple Beat OpenAI in 2027?

I can’t speak to what Ive and Altman are up to with their coming hardware device. However, I do think that integrating AI effectively into iOS could change the game. A partnership with Google Gemini may very well turn the tide in the AI race. Add the rumored Apple AI search engine and other AI features built into the ecosystem, and I like the angle Apple is taking in AI.

Apple is not trying to reinvent the wheel; it’s willing to collaborate (with suppliers and even Magnificent Seven rivals) to produce a better product for its users. And I think it’s hard to go wrong with this approach as there’s more AI-driven profits to be had if big tech works together, at least in my view. After the recent favorable antitrust ruling, perhaps Google will be paying Apple to pick Gemini as its AI of choice. And maybe OpenAI may be more inclined to pay up to maintain its own partnership to integrate ChatGPT in the Apple ecosystem.

Either way, I think Apple has what it takes to hold its own against OpenAI in two years’ time, even as Altman and his team pursue artificial general intelligence (AGI). Time will tell which firm will be ahead and if AGI will really be here by then. Personally, I’d be inclined to think it won’t arrive until after 2030, but, of course, I could be wrong.