'Code Red' says OpenAI CEO Sam Altman in an internal memo post Google Gemini 3 release: Report

In a recent internal memo, OpenAI CEO Sam Altman has signaled a 'code red' at the company, urging a rapid enhancement of ChatGPT's capabilities. This decisive move highlights the escalating competition in the AI sector, particularly following the launch of Google’s Gemini 3 model, which has garnered attention for its impressive performance metrics. Altman informed his team that the company is at a pivotal moment for ChatGPT, driven by concerns that Gemini 3's success could create 'temporary economic headwinds' for OpenAI. He acknowledged that the market's reaction to Google's new offering might present challenges, stating that the 'vibes out there [will] be rough for a bit.' The competitive landscape has intensified, especially after influential figures, including Salesforce CEO Marc Benioff, publicly endorsed Gemini 3, describing its advancements as a 'generational leap' in AI capabilities. Despite these pressures, ChatGPT continues to maintain its position as a leading AI tool, boasting around 800 million users each week. In response to the competitive threat, OpenAI is reallocating resources towards product improvements and has decided to postpone plans for introducing advertising within the chatbot to concentrate on enhancing core features. Financially, OpenAI is currently operating at a loss but expects revenues to exceed £16 billion (approximately $20 billion) this year, with Altman predicting substantial growth that could reach into the hundreds of billions by 2030. The company's valuation has reached an impressive £400 billion. However, Altman's long-term vision is capital-intensive, with a commitment to invest $1.4 trillion in data center costs over the next eight years to support the training and operation of its AI systems. This 'code red' situation not only signifies a product urgency but also emphasizes the necessity of securing a dominant market position to justify these extensive future investments. Altman recently expressed concerns about the balance of computing power, indicating that the risk of OpenAI not having sufficient resources is greater than the risk of having an excess. This sentiment underscores the pressing need for the company to adapt and innovate in the face of mounting competition.