Apple CEO John Ternus says artificial intelligence should improve products without adding unnecessary complexity. Meanwhile, OpenAI has reportedly reduced its latest fundraising target by $10 billion as investors reconsider the costs of AI development.
Apple CEO John Ternus is defending the company’s approach to artificial intelligence as concerns about technology spending place new pressure on some of the industry’s largest developers. In an interview published October 30, 2026, Ternus argued that AI should improve everyday products rather than become a feature companies introduce simply to attract attention.
His comments came as OpenAI reportedly reduced its latest fundraising target from $30 billion to approximately $20 billion. The change followed a sharp decline in technology stocks and growing investor concerns about the enormous cost of developing and operating advanced AI systems.
The developments illustrate two different challenges facing the industry. Apple must demonstrate that its AI features can compete with rival products, while OpenAI must persuade investors that continued expansion justifies substantial new funding.
Apple CEO Says AI Must Serve a Purpose
Ternus outlined his approach during an interview with Steven Levy of Wired, published Friday, October 30.
The 51-year-old executive became Apple’s chief executive on September 1, succeeding Tim Cook, who moved into the role of executive chairman.
Ternus has spent approximately 25 years at Apple, helping oversee hardware development across products including the iPhone, Mac, iPad, and AirPods.
His promotion placed him in charge during a period when artificial intelligence is changing how consumers interact with phones, computers, and digital services.
Apple has faced criticism for moving more slowly than competitors in introducing advanced AI capabilities. Companies including Google, Microsoft, and OpenAI have invested heavily in conversational assistants and automated software tools.
Ternus acknowledged the criticism but expressed confidence in Apple’s direction.
“We don’t want to ship AI for AI’s sake,” he told Levy.
He explained that Apple intends to use artificial intelligence in new products, but the technology should be judged by whether it improves the customer experience.
His central argument is that users should benefit from AI without needing to think about which technology makes a feature work.
Rather than emphasizing technical capabilities alone, Apple wants its products to feel useful, dependable, and easy to operate.
That approach reflects the company’s long-standing emphasis on integrating hardware, software, and services into a consistent experience.
Delayed Siri Upgrade Adds Pressure
Apple’s AI strategy has faced scrutiny following delays to a more powerful version of Siri.
The company initially announced plans to make its voice assistant more capable of understanding personal information, recognizing onscreen content, and performing tasks across applications.
Those improvements took longer than originally expected, creating questions about Apple’s ability to keep pace with rapidly advancing competitors.
Apple introduced its redesigned Siri AI in June 2026 and began releasing the new capabilities in September.
The updated assistant offers more conversational interactions, improved understanding of personal context, and additional tools for completing tasks across Apple’s software.
These features include finding information from messages and emails, helping users complete actions, and responding to more complicated requests.
Apple has also expanded AI-related capabilities in Photos, Safari, and other applications.
However, releasing new features does not automatically establish that Apple’s technology performs better than competing systems. Reliability, accuracy, privacy, and customer satisfaction remain important measures of its success.
Ternus suggested that the company’s priorities extend beyond being first to introduce a particular capability.
He also questioned predictions that AI agents will eventually replace traditional applications altogether.
Some technology developers envision systems that perform complex tasks independently, potentially reducing the need for users to navigate individual apps.
Ternus did not dismiss the possibility of significant changes, but he emphasized Apple’s continued interest in creating carefully designed products.
The interview also addressed security and regulation. Ternus said Apple was focused on keeping its products secure and protecting user information, although he did not provide a definitive position on broader AI regulation.
OpenAI Reportedly Reduces Funding Target
While Apple considers how to integrate AI into consumer products, OpenAI is facing a different financial challenge.
Reuters reported October 30 that OpenAI had reduced the target for its latest investment round by approximately $10 billion, citing information originally published by the Financial Times.
The company is now reportedly seeking around $20 billion instead of $30 billion.
Its proposed valuation has also reportedly fallen from approximately $1.4 trillion to $1.25 trillion.
OpenAI had asked investors to make commitments by Friday, October 30. However, the initial closing was expected to raise less than the revised target after some investors reduced their planned contributions.
The figures represent reported fundraising expectations, not a confirmed final transaction.
OpenAI had not publicly confirmed the revised fundraising terms when Reuters published its report.
The company faces substantial expenses associated with developing AI models, expanding data-center capacity, obtaining advanced computer chips, and supporting growing demand for its services.
These costs have made access to investment capital particularly important.
Major Investors Remain Interested
Despite the reported reduction in its fundraising target, OpenAI continues to attract interest from major international investment firms.
According to the Financial Times report summarized by Reuters, a consortium of United Arab Emirates investors is expected to make the largest contribution to the latest round.
That group includes MGX, an Abu Dhabi-backed technology investment company.
The proposed arrangement could also provide OpenAI with access to additional computing infrastructure being developed in the region.
Other investors expected to participate include Founders Fund, Coatue, Sequoia Capital, and Andreessen Horowitz.
Their possible participation indicates that institutional interest has not disappeared, although the amount individual investors will ultimately contribute remains uncertain.
SoftBank is another significant OpenAI backer. The Japanese investment company completed a previously committed $30 billion investment in October, bringing its cumulative investment in OpenAI to approximately $64.6 billion.
That earlier investment should not be confused with the newer fundraising round.
OpenAI is also reportedly considering a public stock offering in 2027. Completing another private financing round could help the company fund operations before a potential market debut.
However, the timing and terms of any initial public offering remain subject to change.
Anthropic IPO Creates Another Test for AI Valuations
OpenAI’s fundraising efforts are unfolding as rival Anthropic prepares for a possible public listing.
Anthropic filed documents for an initial public offering on October 26, with a potential stock market debut planned for November.
The company’s expected valuation has become an important subject of discussion among investors.
Earlier expectations had placed Anthropic’s possible market value near $2 trillion. More recent discussions have focused on approximately $1.5 trillion as investors evaluate its revenue growth, spending commitments, and financial risks.
These figures are estimates associated with a proposed stock offering, not an established public market capitalization.
Anthropic has reported rapid revenue growth, but building and operating advanced AI systems requires extraordinary investment in computing infrastructure.
The company has also disclosed significant long-term financial commitments.
New York University finance professor Aswath Damodaran has examined whether optimistic growth projections can justify such high valuations.
His analysis emphasizes the importance of future revenue, profit margins, investment requirements, and risk when estimating what an AI business may be worth.
Anthropic’s eventual offering price could provide an important benchmark for how public investors value leading AI developers.
Technology Selloff Raises Investor Concerns
The latest fundraising developments followed a difficult period for American technology stocks.
The technology-heavy Nasdaq Composite fell 2.9% on Friday, October 30, according to Reuters.
That left the index approximately 7.8% below its record closing level reached October 6.
Investors have become increasingly concerned about the amount of money technology companies are committing to AI development.
Much of that investment is directed toward data centers, specialized processors, electricity supply, and the infrastructure required to train and operate advanced models.
Companies must also demonstrate that revenue from AI products can eventually support these expenses.
A decline in technology stocks can affect private fundraising because investors use public market valuations when evaluating privately held businesses.
Lower valuations may make investors more cautious about committing large amounts of capital at previously proposed prices.
Nevertheless, reduced fundraising targets do not necessarily mean that investors have abandoned AI.
They may instead reflect greater attention to financial performance, spending commitments, and the price investors are willing to pay.
Different Strategies Face the Same Market Questions
Apple and OpenAI occupy different positions in the AI industry.
Apple earns revenue primarily through consumer devices and services, using artificial intelligence to support products that already reach a substantial global customer base.
OpenAI develops advanced AI models and services that depend heavily on continued research, computing capacity, and commercial adoption.
The companies therefore face different financial demands and measures of success.
For Apple, the immediate challenge is demonstrating that its redesigned Siri and other AI capabilities provide meaningful improvements for customers.
For OpenAI, the reported fundraising changes raise questions about how much capital investors will supply and at what valuation.
Neither development establishes which company’s approach will prove more successful.
Apple must still demonstrate the usefulness and reliability of its AI products, while OpenAI must complete its fundraising and continue supporting its infrastructure requirements.
The next major financial test could arrive with Anthropic’s planned November stock market debut, which may influence how investors assess the entire sector.
IMAGE: John Ternus, photographed by Tessa Bury, during Apple’s 50th-anniversary kickoff event at Apple’s Grand Central Terminal store in New York City on March 13, 2026.. Photo: Tessa Bury / Wikimedia, taken 2026-03-13, CC BY 4.0