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Why Sam Altman Put OpenAI on Code Red Alert

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Why Sam Altman Put OpenAI on Code Red Alert

Image sourced from livemint.com
Image sourced from livemint.com

Sam Altman, OpenAI’s CEO, sent an internal memo declaring a “code red” to rally the team around fixing ChatGPT. This highest-priority alert means pausing other projects to boost the chatbot’s speed, reliability, personalization, and ability to handle more questions. The push comes as Google Gemini gains ground.

Code Red Means All Hands on ChatGPT

OpenAI uses color codes for issues: red for top urgency, then orange and yellow. They tried code orange before, per Mint’s report on the memo, quoted by The Information and Wall Street Journal.

Altman wants daily calls for ChatGPT leads and even temporary team shifts. They’re shelving ads on ChatGPT (in beta now), health/shopping AI agents, and Pulse—that daily news digest Altman once called a favorite feature.

Nick Turley, ChatGPT’s head, posted on X that the goal is a more intuitive, personal tool while growing worldwide.

Rivals Like Gemini Are Closing In Fast

ChatGPT holds over 70% of the generative AI market share, says SimilarWeb data cited by Mint, but it’s slipping—Gemini just hit 15% for the first time.

Google’s Gemini 3 topped ChatGPT in benchmarks, including a record on Humanity’s Last Exam, per Business Chief North America and The Independent. Its Nano Banana image tool went viral for style edits and multi-subject adds. Salesforce’s Marc Benioff tweeted after two hours on Gemini 3: “I’m not going back. The leap is insane.” Altman publicly praised it but privately admitted OpenAI needs catch-up work.

Google’s app jumped from 450 million monthly users in July to 650 million in October, thanks to Nano Banana’s August debut, reports Morning Brew. ChatGPT has 800 million weekly users but faces heat from Anthropic too, which grew from under 1,000 enterprise customers two years ago to over 300,000 by September after buying AI coder Bun.

  • Gemini strengths: Benchmarks, image gen, reasoning.
  • OpenAI response: Prioritize core product over side projects.

OpenAI burns cash on $1.4 trillion in infrastructure over eight years and isn’t profitable yet, per Axios. Code red aims to keep them ahead in the AI race, per Bloomberg.

More stories at letsjustdoai.com

Seb

I love AI and automations, I enjoy seeing how it can make my life easier. I have a background in computational sciences and worked in academia, industry and as consultant. This is my journey about how I learn and use AI.

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