OpenAI CEO Sam Altman has reportedly issued a “code red,” instructing teams to urgently accelerate improvements to ChatGPT in response to intensifying competition from Google’s newly launched Gemini 3 model, according to a report by The Information.
In an internal memo, Altman described the current phase as a “critical time” for ChatGPT, noting that Gemini 3 has outperformed competitors on several major benchmarks. The Google model’s strong market reception is expected to create “temporary economic headwinds,” with Altman cautioning employees that industry sentiment “will be rough for a bit.”
The competitive pressure escalated after influential figures publicly endorsed Gemini 3. Salesforce CEO Marc Benioff praised the system’s “insane” advancements in reasoning, speed, and multimedia capabilities, saying he was “not going back” after testing it.
Despite the mounting challenges, ChatGPT continues to lead globally, boasting around 800 million weekly users. Nonetheless, OpenAI is redirecting internal resources to focus intensely on product upgrades. Plans to introduce advertising within ChatGPT have been put on hold to avoid distractions.
OpenAI is currently operating at a financial loss but expects annual revenues to surpass £16 billion (approximately $20 billion) in 2025. With a valuation of £400 billion, the company is preparing for a massive long-term investment plan, pledging $1.4 trillion in data center spending over the next eight years to power future AI systems.
Altman has emphasized that the greatest risk OpenAI faces is not having sufficient computing power, underscoring the strategic urgency behind the “code red” initiative as the company works to maintain its leadership in an increasingly competitive AI landscape.
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