OpenAI, teh artificial intelligence leader behind ChatGPT, is undergoing a significant internal shift, as CEO Sam Altman issued a company-wide “code red” alert to prioritize improvements to its flagship chatbot. The move comes amid intensifying competition from Google adn Anthropic, both of whom recently unveiled AI models outperforming OpenAI’s GPT-5 in key industry evaluations [[number]]. Altman’s memo signals a strategic refocusing of the $500 billion company, pausing progress on several other promising projects to bolster ChatGPT’s position in a rapidly evolving market.
OpenAI CEO Sam Altman has declared a “code red” situation, signaling an urgent need to significantly improve ChatGPT.
In an internal memo sent Monday, Altman stated that this “mobilization” will refocus OpenAI’s efforts primarily on ChatGPT, specifically to increase its speed, reliability, and personalization. The chatbot currently dominates the market, and maintaining that position is critical as competition intensifies.
The $500 billion startup plans to postpone other projects, Altman told employees, as “ChatGPT is at a critical juncture.”
Specifically, development of advertising products, AI agents designed to automate shopping and healthcare tasks, and a product called Pulse – which creates personalized morning briefings for users – will be delayed. The Information Financial Times first reported the details of the memo.
This strategic shift comes as OpenAI faces growing competition, rising data center costs, technical challenges in maintaining its leading edge in AI development, and an ongoing battle to retain key talent.
Last month, Google released its latest large language model, Gemini 3, which surpassed OpenAI’s GPT-5 in industry benchmark tests. Anthropic’s newest model, Opus 4.5, also outperformed GPT-5 on key metrics.
Koray Kavukcuoglu, AI architect at Google and technical director of DeepMind, stated that the tech giant has “fundamentally shifted the performance” by training models on Google-designed, custom-built chips. The company also announced it is immediately integrating its latest AI models into its products.
Google has also improved the methods used to train its models, an area where OpenAI has recently faced challenges.
Even before the launch of Gemini 3, Altman acknowledged that OpenAI would need to focus to withstand short-term competitive pressure. “Expect things to get a bit choppy for a while,” he reportedly said.
Nick Turley, Vice President and Head of ChatGPT, wrote on X (formerly Twitter) Monday evening: “Search is one of the biggest opportunities. ChatGPT now represents roughly 10% of search activity and is growing rapidly.” “Now we’re focused on making ChatGPT even more capable, growing and expanding it around the world – and making it feel even more intuitive and personal,” he added.
With over 800 million weekly users, OpenAI holds a substantial market share in overall chatbot usage. However, data from analytics firm Similarweb indicates that people are spending more time conversing with Gemini than with ChatGPT.
San Francisco, CA – OpenAI is prioritizing improvements to its flagship ChatGPT chatbot, initiating what CEO Sam Altman has termed a “code red” situation within the company. The move signals a heightened awareness of the rapidly evolving artificial intelligence landscape and increasing competition from rivals like Google and Anthropic.
According to an internal memo, OpenAI will temporarily halt development on other projects – including plans for advertising products, AI-powered shopping assistants, healthcare applications, and a personalized news briefing feature called Pulse – to concentrate resources on enhancing ChatGPT’s speed, reliability, and personalization. This refocusing comes as the chatbot, which has become a household name, faces growing pressure from newer models.
The decision follows the release of Google’s Gemini 3 and Anthropic’s Opus 4.5, both of which have demonstrated superior performance to OpenAI’s GPT-5 in recent benchmark tests. Google’s Kavukcuoglu highlighted the company’s advancements in chip design and model training as key factors in its progress. The update signals growing competition in the AI sector, pushing companies to innovate at an accelerated pace.
OpenAI executives remain optimistic about ChatGPT’s potential, particularly in the search market. Turley noted that the chatbot already accounts for approximately 10% of all search activity and is experiencing rapid growth. The company’s strategy reflects the broader trend of AI integration into everyday tools and platforms, transforming how users access and interact with information.
