OpenAI Declares 'Code Red' as Google Gains Ground in AI Competition

Dec 2, 2025

OpenAI CEO Sam Altman has told employees to prioritize improvements to ChatGPT, declaring a 'code red' within the company. This means OpenAI is pausing work on projects like advertising and focusing on making its chatbot more competitive.

The move comes as Google, with its Gemini artificial intelligence model, is quickly closing the gap with OpenAI. Gemini is now considered the second most popular large language model after ChatGPT, and it is gaining market share.

Google's recent advances in AI technology, including new chip deals, have strengthened its position in the competitive AI field. Other companies like Anthropic and DeepSeek are also developing their own strong AI models.

OpenAI faces increased pressure as these rivals invest heavily in AI and improve their products. Google's strong financial position is seen as an advantage compared to some AI-focused companies that are spending a lot of cash to compete.

What does 'code red' mean for OpenAI?

It means OpenAI is treating the situation as urgent and is focusing its resources on improving ChatGPT to stay ahead of the competition.

Why is Google considered a threat to OpenAI?

Google's Gemini AI is improving quickly, gaining users, and the company has strong technology and financial resources to compete.

Are other companies besides Google competing with OpenAI?

Yes, companies like Anthropic and DeepSeek are also working on advanced AI models.

What changes will OpenAI make because of this competition?

OpenAI is pausing its work on advertising and focusing on making ChatGPT faster and better for users.

Sources
Alphabet: Emerging From The AI Pack
Seeking Alpha
Alphabet is gaining AI leadership, with Gemini now the clear second LLM behind ChatGPT and gaining market share. A new chip deal highlights GOOG's advanced AI technology, reinforcing its competitive position against OpenAI and other tech giants. The company has a far stronger balance sheet and finan...
OpenAI's Altman Declares ‘Code Red' to Improve ChatGPT as Google Threatens AI Le...
WSJ
Sam Altman told employees they must focus on the company's chatbot experience, to the exclusion of other priorities including advertising.
OpenAI is under pressure as Google, Anthropic gain ground
CNBC
OpenAI CEO Sam Atlman sent a memo to his staffers outlining a "code red" effort to improve ChatGPT, according to multiple reports. The company is facing increasingly stiff competition from rivals like Google and Anthropic.
OpenAI is feeling the heat from Google right now — for good reason
Business Insider
OpenAI CEO Sam Altman has reportedly declared a "code red." Google once did the same amid the rise of ChatGPT.
OpenAI's ‘code red' memo lays bare pressure from Google, DeepSeek and its $1.4 t...
CNBC Television
CNBC's MacKenzie Sigalos reports that CEO Sam Altman has declared a "code red" inside OpenAI, pausing work on its ad-based monetization strategy in order to refocus on core ChatGPT performance as Google's Gemini 3 and new DeepSeek models close the gap.
OpenAI's Sam Altman declares ‘code red' to improve ChatGPT as Google catches up:...
New York Post
OpenAI boss Sam Altman has reportedly declared a “code red” pushing employees to improve ChatGPT as AI giant fends off concerns that it is losing ground to rivals like Google.
Jim Cramer says OpenAI's real ‘code red' is a funding problem, not Google's Gemi...
CNBC
Cramer says OpenAI's internal “code red” reflects concern that Google's Gemini 3 may be gaining on ChatGPT in users. He argues the bigger risk is financial: Alphabet, Amazon, Meta and Microsoft can borrow far more cheaply than heavily indebted OpenAI.
GOOGL Gemini "Pushing OpenAI to its Max" in A.I. Dominance Race
Schwab Network
“At some point, the A.I. trade is going to fall flat on its face,” says Jake Dollarhide – but not right now.
Alphabet Just Delivered Bad News for Nvidia Stock Investors
The Motley Fool
Alphabet is the parent company of Google and artificial intelligence (AI) development studio DeepMind. Alphabet designed its own data center chips for AI workloads, and it used them exclusively to develop its new Gemini 3 AI model.
Alphabet Stock Has Soared This Year. Is It Still a Buy?
The Motley Fool
Alphabet shares have surged this year as investors gained confidence in its AI technology and value proposition. Recent results show broad-based growth across its business.
Macy's earnings, OpenAI under pressure, Boeing's delivery outlook and more in Mo...
CNBC
Macy's beat Wall Street's top- and bottom line expectations for the third quarter. OpenAI CEO Sam Altman reportedly sent a memo to employees laying out a "code red" effort to improve ChatGPT.
3 Red-Hot Growth Stocks to Buy in 2025
The Motley Fool
Taiwan Semiconductor is the common denominator in the AI chip race. Alphabet's strong AI execution has flipped the narrative surrounding the stock.
Gemini vs. Copilot: Which Tech Giant Will See Revenue Jump 100% First?
The Motley Fool
Alphabet's Gemini has 650 million users and just launched a new version. Microsoft's Copilot only has 150 million users, but also has potential in other ways.
Alphabet Has Everything Meta, Microsoft And OpenAI Lack
Seeking Alpha
Alphabet is emerging as the true ChatGPT Killer by embedding Gemini directly into the daily workflow of billions of users, making standalone chatbots less essential. Furthermore, its TPU based infrastructure delivers major cost and efficiency gains, giving it a structural edge over GPU dependent com...
Bears Calling the AI Top Might Be Early - Very Early
Zacks Investment Research
While skeptics call for an AI bubble, the data suggests the opposite: we are only in the early innings. With supportive macro conditions, expanding real-world adoption, and valuations far from dot-com extremes, the AI trade still offers meaningful upside.
Alphabet: Gemini 3 Changes Everything, And The Market Knows It
Seeking Alpha
Alphabet has emerged as an AI leader, with Gemini 3 exceeding expectations and driving renewed investor enthusiasm. GOOGL posted accelerating revenue growth—16% YoY overall, 15% YoY in Search, and 34% YoY in Cloud, with expanding margins. Heavy AI-driven capital expenditures are supported by a robus...
Is Alphabet Really a Threat to Nvidia's AI Chip Dominance?
The Motley Fool
Nvidia controls around 90% of the AI accelerator market, but that dominance may have peaked. Alphabet's TPU chips offer significant cost advantages for inference workloads, which are growing faster than training.
Alphabet's Quiet AI Chip Bet Suddenly Looks Like Its Next Multi-Billion-Dollar M...
Benzinga
Investors are increasingly eyeing Alphabet Inc.'s (NASDAQ: GOOGL) (NASDAQ: GOOG) in-house artificial intelligence chips as a potential breakout business, betting that the company's tensor processing units could evolve from a behind-the-scenes strength into a major new revenue engine.
Alphabet's AI chip strategy reshapes the battle for semiconductor dominance
Invezz
Alphabet's growing focus on its own AI chips is changing how investors view the race for leadership in the semiconductor industry, a Bloomberg report said on Thursday. What began as an internal effort to support Google's AI models and cloud workloads is now shaping expectations across the wider mark...
Show All Sources
Related Posts
Other News
Back to Top