OpenAI CEO Sam Altman declares 'code red' as ChatGPT competition mounts

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OpenAI (OPAI.PVT) CEO Sam Altman has issued an urgent memo to employees to accelerate improvements to ChatGPT arsenic contention intensifies from rival AI developers Google (GOOG, GOOG) and Anthropic (ANTH.PVT).

Altman told employees successful an interior memo connected Monday that helium was declaring a "code red" to dedicate resources toward bettering ChatGPT, fixed the unit from rivals, The Information reported. The determination volition hold OpenAI's enactment of introducing different products, specified arsenic AI agents, the outlet said.

Google introduced its latest AI model, Gemini 3, successful November, to wide praise. The debut sent the banal soaring to a grounds precocious arsenic Gemini 3 bushed ChatGPT connected benchmark tests that people AI models' performance.

Salesforce CEO Mark Benioff was among the astir salient tech boosters to measurement successful connected the release, saying helium was ditching ChatGPT for Google's latest model. Altman congratulated Google publically connected societal media, but the CEO privately told OpenAI employees that Gemini 3 could make economical headwinds for OpenAI, arsenic reported antecedently by The Information

Another of OpenAI's top rivals, Anthropic, released its ain newest model, Claude Opus 4.5, connected Nov. 24.

OpenAI has ambitious gross goals, with the ChatGPT developer projecting gross volition soar from $13 cardinal successful 2025 to $200 cardinal successful 2030, keeping unit connected the institution to support its pb successful the chatbot space, which it archetypal won aft ChatGPT's merchandise 3 years ago. OpenAI's latest model, GPT-5, was unveiled successful August to mixed reviews.

Read more: How to support your portfolio from an AI bubble

Meanwhile, the starring artificial quality developer has made assertive spending promises successful an effort to standard up AI infrastructure utilized to bid and tally models. OpenAI has committed $1.4 trillion to gathering retired AI information centers implicit the adjacent 8 years, inking multibillion-dollar deals with AI unreality providers CoreWeave (CRWV) and Oracle (ORCL), arsenic good arsenic chipmakers Broadcom (AVGO), Nvidia (NVDA), and Advanced Micro Devices (AMD).

OpenAI's circular deals with its ain suppliers and customers person raised eyebrows connected Wall Street and fueled concerns implicit an AI bubble.