Sam Altman, the CEO of OpenAI, has issued a “code red” in response to escalating competition, particularly from Google’s newly launched AI model, Gemini 3, which has been outperforming others on various benchmarks. This internal memo to employees highlights the urgency of enhancing ChatGPT, OpenAI’s flagship product, amid growing concerns over its market position.
In recent discussions, Altman acknowledged the challenges brought about by Gemini 3’s success and anticipated “temporary economic headwinds” for OpenAI. Despite ChatGPT boasting approximately 800 million weekly users, the potential impact of rival technologies underscores the need for immediate improvements to maintain a competitive edge in the rapidly evolving AI landscape.
Notably, Marc Benioff, CEO of Salesforce, has publicly switched to Gemini 3, praising its superior capabilities in reasoning and speed. His statements reflect a broader trend in the AI sector, where users are seeking more advanced functionalities.
In light of this competitive pressure, OpenAI is delaying its plans to incorporate advertising into ChatGPT to prioritize enhancements that will make the chatbot more intuitive and accessible. Nick Turley, head of ChatGPT, celebrated the product’s third anniversary by committing to continual improvements and expanding its global reach.
Despite facing financial challenges and operating at a loss, OpenAI’s valuation has surged from $157 billion last year to an astounding $500 billion, bolstered by significant investments from entities like SoftBank and Microsoft. Altman projected revenues exceeding $20 billion for the current year, with expectations of growth into the “hundreds of billions” by 2030, courtesy of substantial planned investments in data center operations.
Additionally, the competitive landscape continues to evolve as companies like Apple respond by appointing new leadership in AI, highlighting the intensifying focus on innovation in this vital technology sector. As OpenAI navigates its challenges, its commitment to enhancing ChatGPT indicates a resilient response aimed at securing its place in the future of AI development.