Sam Altman Sounds a “Code Red” as ChatGPT Faces Fierce New Competition
So, there’s been a major shake-up in the AI world, and it’s all centered around ChatGPT. Sam Altman, the CEO of OpenAI, has reportedly issued what he called a “code red” inside the company. And honestly, that phrase alone tells you just how serious things have become. According to internal messages shared with staff, he said that OpenAI is at a “critical time” with ChatGPT, especially as competition from Google’s new Gemini 3 model intensifies.
Now, Gemini 3 has been making waves across the tech industry. It has outperformed other models on several key benchmarks, and that has definitely not gone unnoticed at OpenAI. Inside the company, more resources are being redirected toward improving ChatGPT. Altman even warned employees that Gemini 3 could cause “temporary economic headwinds,” basically meaning it could slow down momentum or revenue for a while. He told the team to brace for what he described as “rough vibes” out there.
And it’s not just benchmarks causing pressure. Big names in the tech world are switching allegiances. Marc Benioff, the CEO of Salesforce—a company worth over $200 billion—said he tried Gemini 3 and wasn’t going back to ChatGPT. He described the leap in reasoning, speed, and multimedia capabilities as “insane.” Coming from someone who said he used ChatGPT daily for three years, that kind of endorsement hits hard.
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Meanwhile, despite ChatGPT reaching an enormous 800 million weekly users, Google still has a massive advantage when it comes to resources, thanks to its profitable search business and vast data pools. That imbalance adds even more urgency to OpenAI’s internal push.
Interestingly, OpenAI was planning to introduce advertising into ChatGPT, but that move is being delayed. Instead, the company is putting all its energy into improving the product itself. Nick Turley, who heads ChatGPT, marked the platform’s third anniversary by promising to make the tool more capable, more intuitive, and more personal for users around the world.
Financially, OpenAI is in an ambitious but risky phase. Even though it doesn’t have the same cash flow as Google, Meta, or Amazon, it has still achieved a staggering valuation of $500 billion—more than triple what it was just a year ago. The company expects over $20 billion in revenue this year and predicts that could grow to “hundreds of billions” by 2030. A big part of that projection comes from its plan to spend an almost unbelievable $1.4 trillion on datacenters over the next eight years.
And while all of this is happening inside OpenAI, the broader AI race continues to intensify. Apple is stepping up by hiring Amar Subramanya—previously a senior AI leader at Microsoft and Google—to accelerate its own AI efforts. Even Siri’s long-awaited improvements have been delayed until 2026.
So, the pressure is on. The competition is heating up. And for OpenAI, this truly looks like one of those make-or-break moments that will define the next era of AI.
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