OpenAI CEO Sam Altman has reportedly declared a “code red” as the company faces rising pressure from Google’s Gemini 3, mirroring the challenge Google faced from ChatGPT three years ago. In an internal memo, Altman told employees that OpenAI will temporarily shift focus and delay other projects to strengthen ChatGPT, as competition intensifies from Google, Anthropic, and Meta in the AI race.
OpenAI Chief Executive Sam Altman told employees that the company was declaring a “code red” effort to improve the quality of ChatGPT https://t.co/qkFxVNkias
— The Wall Street Journal (@WSJ) December 2, 2025
OpenAI is putting several projects on hold, including advertising and autonomous initiatives, as part of its “Code Red” response, with CEO Sam Altman urging a company-wide “surge” to improve ChatGPT. In the internal memo reported by The Information, Altman said the company is at a “critical time,” emphasising that ChatGPT needs urgent strengthening to stay ahead in an intensifying AI race.
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The pressure stems largely from Google’s sweeping launch of Gemini 3, which quickly reached billions of users and outperformed ChatGPT on multiple benchmark tests. This rollout, combined with competitor momentum from Anthropic and Meta, marks one of the strongest challenges to OpenAI’s lead since ChatGPT debuted. Google’s rapid growth, especially after its viral Nano Banana image model, has signalled a shifting tide, even as OpenAI touts ChatGPT’s 800 million weekly users.
🇺🇸 SAM ALTMAN JUST HIT “CODE RED” – AND BIG TECH FINALLY SMELLS BLOOD
OpenAI just threw the emergency lever.
Sam Altman – the man who spent the last 2 years looking untouchable – told his staff this week that the AI crown is no longer guaranteed.
Not with Google firing off… pic.twitter.com/C47nxhfzld
— Mario Nawfal (@MarioNawfal) December 2, 2025
Financially, OpenAI also finds itself at a disadvantage, being unprofitable while competing with Big Tech giants that have massive resources. At the same time, it continues to face scrutiny over ChatGPT’s safety and must balance improving capabilities with maintaining trust. Meanwhile, Gemini 3’s ability to generate hyper-realistic images has contributed to its explosive popularity worldwide.
To counter this, Altman has ordered teams to prioritise ChatGPT improvements, especially personalised experiences, behaviour fine-tuning, and better image generation. Temporary team transfers, daily check-ins, and laser-focused development cycles are being put in motion. Nick Turley, head of ChatGPT, echoed the urgency on X, saying the goal is to make ChatGPT “more capable, more intuitive, and more personal.” The memo also revealed that OpenAI previously issued a “Code Orange,” but the new “Code Red” underscores the heightened stakes.
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