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The AI race just got more intense. Sam Altman, OpenAI’s CEO, sent an internal memo declaring a “Code Red” to focus all resources on improving ChatGPT. This comes after Google launched its newest AI model, Gemini 3.
Competition in the AI world is at a tipping point. Altman asked his team to prioritize ChatGPT upgrades as Google rolled out Gemini 3 on November 18.
Gemini 3 was integrated quickly across Google’s ecosystem, including the Gemini app, AI Studio, and Google Search. This is the fastest deployment Google has ever done.
“We are at a critical time for ChatGPT,” Altman wrote in his memo.
He reportedly told OpenAI staff to enhance ChatGPT’s personalization, speed, and reliability. The goal is also to broaden the topics it can handle.
Shifting priorities at OpenAI
Some projects are being delayed. OpenAI is pushing back other initiatives, including its advertising plans.
Altman admitted the company must make big improvements to ChatGPT, even though a new reasoning model that outperforms Gemini 3 is ready internally.
The pressure is real. OpenAI needs to keep growing revenue from subscriptions to satisfy investors. Predictions suggest ChatGPT could bring in nearly $10 billion this year.
The tables have turned
The situation feels familiar. Almost three years ago, Google CEO Sundar Pichai declared his own “Code Red” when ChatGPT first launched in late 2022.
Speaking at Salesforce’s Dreamforce event, Pichai said OpenAI beat Google to launching a chatbot. He admitted Google would probably have released their version a few months later.
When ChatGPT arrived, Pichai said he was excited. He called it a chance to “seize the moment and execute well as a company.”
Gemini 3 makes waves
The new model of Google scored 37.4 on the Humanity’s Last Exam benchmark, the highest ever. It also topped the LMArena leaderboard, a human-led ranking for user satisfaction.
Industry leaders took notice. Salesforce CEO Marc Benioff said he has used ChatGPT daily for three years, but after spending just two hours with Gemini 3, he is not going back.
Altman publicly congratulated Google on Gemini 3. But behind the scenes, OpenAI feels the pressure to reclaim its lead.
