TL;DR
Sam Altman rose rapidly from relative obscurity to become a central figure in AI, backed by major partners and political access. In recent months his public standing and OpenAI’s business position have weakened as rivals, product shortfalls, financing questions and shifting partnerships — notably Apple’s move toward Google for Siri generative AI — have eroded its lead.
What happened
Sam Altman became a high-profile figure in AI between 2021 and 2024, drawing attention from lawmakers, prime ministers and major tech firms after OpenAI’s early commercial successes and large investments from Microsoft. That ascendancy has faltered. Critics and journalists have questioned Altman’s technical vision and financial maneuvers; the company’s promises around AGI and the rollout of GPT-5 left many observers disappointed. OpenAI faces intensifying commercial pressure: Anthropic has won corporate customers away, DeepSeek triggered a price war that pushed OpenAI to cut prices, and studies cited in the piece suggest many corporate customers see limited returns. OpenAI reportedly has not made a profit. In late 2025 and early 2026 the situation worsened when Apple, after a 2024 pilot with OpenAI, opted to work with Google for the next phase of generative AI in Siri. The author also notes legal friction involving Elon Musk and says Altman declared a company “code red” in December.
Why it matters
- Shifts in major partnerships (Apple choosing Google) reduce OpenAI’s platform reach and commercial leverage.
- Commoditization and price competition threaten margins in a compute-intensive business model that the author says lacks profitability so far.
- Customer churn to rivals like Anthropic suggests market share and enterprise trust may be eroding.
- Public and investor confidence in leadership and financing can affect future deals, product development and regulatory scrutiny.
Key facts
- By May 2023 Sam Altman was widely recognized and met with US senators and national leaders.
- Microsoft invested billions in OpenAI in the years following ChatGPT’s release.
- Apple ran a 2024 pilot with OpenAI but has since chosen Google for the next Siri generative AI effort.
- Observers and journalists have criticized Altman’s public explanations of OpenAI’s finances and strategy.
- GPT-5 was described in the piece as late and failing to meet many public expectations.
- Anthropic has taken a notable share of corporate customers from OpenAI.
- A price war led by a competitor called DeepSeek forced OpenAI to lower prices significantly.
- The article states OpenAI has never made a profit.
- The author reports Altman declared a ‘code red’ in December amid mounting pressures.
- The piece claims some in the industry have labeled Altman disparagingly and that his credibility has declined.
What to watch next
- How Apple’s move to Google for Siri’s generative features affects OpenAI’s enterprise partnerships and revenue.
- OpenAI’s near-term financial strategy and whether it can move toward profitability or needs additional external support.
- Competitive dynamics among OpenAI, Anthropic, Google and newcomers like DeepSeek; watch pricing, customer wins and product updates.
- Legal developments referenced between Altman and Elon Musk—timing and outcomes of any trials mentioned.
Quick glossary
- Large language model (LLM): A machine-learning model trained on large amounts of text to generate or analyze human-like language.
- Generative AI: AI systems that produce new content—text, images, audio or code—based on learned patterns from data.
- Commoditization: When a product or service becomes widely available and undifferentiated, often driving prices down.
- Price war: Competitive scenario where companies sharply cut prices to gain or defend market share, often reducing margins.
- Pilot: A limited trial deployment of a product or service used to evaluate feasibility before a wider rollout.
Reader FAQ
Is Apple partnering with OpenAI for Siri?
No — the piece says Apple ran a 2024 pilot with OpenAI but has chosen Google for the next Siri generative AI effort.
Is OpenAI profitable?
The article states that OpenAI has never made a profit.
Did GPT-5 meet expectations?
According to the piece, GPT-5 was widely seen as late and disappointing relative to the hype.
Are there legal disputes involving Sam Altman and Elon Musk?
The article says Elon Musk parted ways with Altman and that related legal matters are heading to a jury soon.
Will the government bail out OpenAI?
Not confirmed in the source.
The rapid rise and slow decline of Sam Altman Bad news from Apple yesterday highlights OpenAI’s eroding lead GARY MARCUS JAN 13, 2026 108 43 13 Share Things aren’t as…
Sources
- The rapid rise and slow decline of Sam Altman
- CEO of the Year 2023: Sam Altman
- 5 Game-Changing AI Revelations from Sam Altman
- Sam Altman believes AI will change the world (and …
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