Stronger rivals prompt internal “code red”
OpenAI CEO Sam Altman has issued a “code red” to employees, urging the company to accelerate improvements to ChatGPT as competition in the artificial intelligence sector sharpens. In an internal memo cited by industry reports, Altman warned that the chatbot is at a “critical time,” following the strong performance of Google’s Gemini 3 model.
Altman previously cautioned staff that Gemini 3’s success could create “temporary economic headwinds” for the company. Despite ChatGPT reaching 800 million weekly users, OpenAI faces rivals with larger financial reserves and deeper data ecosystems.
Users explore alternatives as market shifts
Google’s latest AI release has drawn high-profile endorsements, including from Salesforce CEO Marc Benioff, who publicly declared he would switch to Gemini 3 after testing its capabilities. He highlighted improvements in reasoning, speed, and multimedia performance, describing the leap as “insane.”
OpenAI is temporarily pausing plans to introduce advertising within ChatGPT to focus fully on enhancing the platform’s accuracy, personalization, and user experience. On the product’s third anniversary, ChatGPT chief Nick Turley said the team is committed to expanding global access and making the assistant “more intuitive and personal.”
Heavy investments underline OpenAI’s long-term goals
Although the company does not enjoy the same cash flow stability as Google, Meta, or Amazon, OpenAI continues to attract large investors, including Microsoft and SoftBank. The company’s valuation recently climbed to $500 billion, reflecting market confidence in its growth trajectory.
OpenAI expects more than $20 billion in annual revenue by year-end and aims for “hundreds of billions” by 2030. This ambition aligns with its plan to spend $1.4 trillion on data center infrastructure over the next eight years to sustain and scale its AI systems. Altman said the greater risk is having too little computing power, not too much.
Apple reorganizes as the AI race accelerates
The competitive landscape has also triggered change at Apple. The company appointed Amar Subramanya, formerly a senior AI leader at Microsoft and Google, as its new vice president of AI. Subramanya previously oversaw engineering for Google’s Gemini assistant and will now guide Apple’s strategy in the field.
Apple has been slower than competitors to embed advanced AI features into its devices. Updates to Siri relying on next-gen AI models have been postponed until 2026, even as Samsung and others advance their AI-integrated product lines.
