Sam Altman issues 'code red' at OpenAI as ChatGPT contends with rivals (www.theguardian.com)

Sam Altman, CEO of OpenAI, has issued a 'code red' in response to increasing competition from Google’s new AI model, Gemini 3, which outperforms ChatGPT on several benchmarks. This has prompted OpenAI to reallocate resources for enhancing ChatGPT, as the company anticipates "temporary economic headwinds" amid fierce rivalry. Even with 800 million weekly users, OpenAI faces challenges from its competitors’ substantial data and financial backing, particularly as industry leaders like Salesforce’s Marc Benioff have publicly switched to using Gemini 3, citing its superior performance in reasoning and speed. In light of these developments, OpenAI has decided to delay its plans for advertising within ChatGPT to prioritize improvements to the chatbot. Despite being loss-making, OpenAI is projecting revenue growth that could reach hundreds of billions by 2030, underpinned by significant investments in data centers. Altman underscored the urgency of expanding computing power to meet growing AI demand, signaling a pivotal moment for OpenAI as it seeks to maintain its leadership position in a rapidly evolving AI landscape.