Sam Altman Declares Code Red as Google Gemini Intensifies Competition

OpenAI’s CEO Sam Altman has reportedly issued a company-wide “code red” alert, signalling an urgent internal shift to refocus on the firm’s flagship product, ChatGPT, amid intensifying competition from Gemini 3, developed by Google. According to multiple reports, the internal memo issued by Altman instructed teams to prioritise improving ChatGPT’s speed, reliability and personalization, while delaying a number of other high-profile projects such as advertising integration, specialised shopping and health AI agents, and a personal assistant codenamed “Pulse”.

Key Highlights

• Sam Altman issues “code red,” directing OpenAI to prioritise ChatGPT improvements amid rising Google Gemini competition.
• OpenAI pauses several projects to strengthen ChatGPT’s speed, reliability and market position against Gemini.

The move comes as Gemini 3 has gained significant traction, reportedly outperforming ChatGPT in a range of benchmarks and gaining strong user-adoption momentum. Analysts suggest the gemini launch has turned the spotlight back on OpenAI’s relative competitive position. With ChatGPT boasting hundreds of millions of users yet still facing profitability and infrastructure scaling challenges, the urgency is both strategic and operational.

Internally, Sam Altman is said to have emphasised that the company is “at a critical moment for ChatGPT,” and signalled more frequent coordination across teams, daily development calls, and resource reallocation to ensure the product remains ahead. Meanwhile, other initiatives — including monetization efforts through advertising and expansion into other AI-assistant domains — have been temporarily put on hold so that the company can double-down on its core offering.

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This strategic pivot underscores how fierce the current AI race has become: what was once viewed as a dominant lead for OpenAI is now being challenged by rivals with deeper infrastructure, broader product ecosystems and rapidly evolving models. The “code red” reflects the company’s recognition that it cannot take its status for granted and must act decisively to maintain its edge.