OpenAI is reportedly prioritizing improvements to ChatGPT after CEO Sam Altman issued a “code red” directive to staff,signaling a sharp response to growing competition in the artificial intelligence market. The move, first reported by The Details, includes pausing development on other projects to focus resources on bolstering ChatGPT’s capabilities, a reversal from recent expansion efforts. This comes as Google’s Gemini 3 chatbot demonstrates increasing performance and user adoption, challenging OpenAI’s dominance in the rapidly evolving AI landscape.
OpenAI CEO Sam Altman has issued a company-wide “code red” directive, signaling an urgent need to improve the performance of its flagship chatbot, ChatGPT. The move underscores the intensifying competition in the artificial intelligence sector and the critical importance of maintaining a leading edge in this rapidly evolving market.
According to reporting from The Information, Altman communicated the urgency to employees in a recent internal memo, stating that all available resources should be focused on enhancing ChatGPT’s capabilities. As a result, several ongoing projects are being postponed to prioritize the chatbot’s development.
These delayed initiatives include AI agents designed to automate tasks in areas like shopping and healthcare, advertising projects, and Pulse, a tool for generating customized reports. The decision reflects a strategic shift towards solidifying ChatGPT’s position in the market.
Competitive Pressure from Google’s Gemini 3
The “code red” declaration stems from growing concerns about competition from Google, specifically its Gemini 3 chatbot. Launched last month, Gemini 3 has demonstrated superior performance to GPT-5 in key benchmark evaluations and has gained traction among users, particularly in image generation.
Google reported a significant increase in Gemini’s user base, growing from 450 million monthly active users in July to 650 million in October. While this figure remains below ChatGPT’s reported 800 million users, the rate of growth is substantial and has prompted a response from OpenAI.
Altman previously warned in an internal memo that Gemini 3 could create unfavorable economic headwinds for OpenAI in the short term. The company is now focused on countering this threat.
OpenAI plans to unveil a new reasoning model next week, which reportedly outperformed Gemini 3 in internal evaluations. However, Altman emphasized the need for continued work to improve the overall user experience of ChatGPT. This highlights the ongoing investment required to maintain a competitive advantage in the AI landscape.
The Information noted that this situation represents a reversal of roles from three years ago, when Google issued a “code red” in response to the emergence of ChatGPT.
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Three years ago, we released ChatGPT as a public research preview at a time when similar AI systems mostly lived inside large companies. We did it because we believed anyone should be able to use advanced AI, not just a select few.— Nick Turley (@nickaturley) December 2, 2025
According to Nick Turley, head of ChatGPT at OpenAI, the chatbot currently accounts for 70% of global AI-powered assistance activities and 10% of all search activity. The company’s objective is to further strengthen its capabilities, ensure continued growth, and expand access worldwide.
