OpenAI declares ‘code red’ as Sam Altman pauses ChatGPT ad rollout: Report

In a significant internal communication, OpenAI CEO Sam Altman has announced a 'code red' status to enhance the quality of its widely-used chatbot, ChatGPT. This information was disclosed through an internal memo cited by major publications including The Information and The Wall Street Journal. Previously, the company had issued a 'code orange' alert aimed at refining ChatGPT's performance. OpenAI employs a color-coded system to indicate the urgency of issues, with red representing the highest level of concern, followed by orange and yellow. The San Francisco-based AI firm is now prioritizing enhancements to user experience, focusing on personalizing interactions, boosting response speed, and expanding the chatbot's ability to address a broader spectrum of inquiries. In the memo, Altman stated that OpenAI would be postponing several initiatives, including the introduction of advertisements in ChatGPT, the development of AI agents for healthcare and shopping, and the personal assistant feature known as Pulse. Notably, Pulse, which Altman previously described as one of his favorite functions, is designed to provide users with daily updates tailored to their interests and previous engagements with ChatGPT. Additionally, Altman encouraged team members to consider temporary transfers and proposed daily meetings with those dedicated to improving ChatGPT. In a recent post on X, Nick Turley, head of ChatGPT, emphasized the company's commitment to making the chatbot more intuitive and user-friendly. He remarked, "Our focus now is to keep making ChatGPT more capable, continue growing, and expand access around the world while making it feel even more intuitive and personal. Thanks for an incredible three years. Lots more to do!" Despite its stronghold in the generative AI sector, holding over 70 percent of the market share according to SimilarWeb data, OpenAI has faced increased competition in recent months, particularly from Google's Gemini, which has recently surpassed the 15 percent market share. Gemini gained notable attention with its Nano Banana model, which allows users to edit images with exceptional consistency and flexibility. The subsequent release of the Gemini 3 Pro model is widely regarded as a strong competitor to OpenAI's offerings, with the Nano Banana Pro model receiving top rankings in image creation and editing benchmarks.