Introduction to the Crisis
OpenAI CEO Sam Altman has declared a "code red" to focus company resources on improving ChatGPT, according to an internal memo. This move is in response to growing competition from Google, whose Gemini 3 model has outperformed ChatGPT in several benchmark tests.
What’s New
The memo signals OpenAI’s response to the competitive threat. Altman told employees that ChatGPT’s day-to-day experience needs improvement, specifically in areas such as personalization features, response speed and reliability, and the chatbot’s ability to answer a wider range of questions. A new reasoning model is expected to launch soon, although OpenAI hasn’t publicly announced it.
Delayed Products
Several product initiatives are being postponed as a result of the "code red" declaration. Advertising integration, which OpenAI had been testing in beta versions of the ChatGPT app, is now on hold. AI agents designed for shopping and healthcare are also delayed, along with improvements to ChatGPT Pulse. Altman has encouraged temporary team transfers to support ChatGPT development and established daily calls for those responsible for improvements.
Competitive Context
Google’s Gemini 3 model has posted strong scores on reasoning benchmarks, outperforming ChatGPT in several tests. Google says Gemini 3 Deep Think outperforms earlier versions on Humanity’s Last Exam, a frontier-level benchmark created by AI safety researchers. OpenAI hasn’t released comparable public benchmark data for its next reasoning model yet.
Benchmark Context
Humanity’s Last Exam is a harder successor to saturated benchmarks like MMLU. It’s maintained by the Center for AI Safety and Scale AI, with an overview available on the project site and results tracked by multiple leaderboards. Google’s Gemini 3 Pro benchmark documentation lists a higher score on Humanity’s Last Exam than several competing models, including GPT 5.
Traffic and Usage Context
Despite the technical pressure, OpenAI still has a large lead in assistant usage. ChatGPT is the "#1 AI assistant worldwide," accounting for "around 70% of assistant usage" and roughly "10% of search activity." OpenAI has more than 800 million weekly users, with most on the free tier, while Gemini’s user base has been growing quickly from a lower starting point.
A Familiar Playbook
The "code red" designation echoes Google’s own response to ChatGPT several years ago. Google management declared a "code red" after ChatGPT’s viral launch, redirecting teams to focus on AI product development. Now the roles have reversed, with Google’s sustained investment in AI infrastructure producing a model that scores higher than ChatGPT on several high-profile benchmarks.
Company Response
Nick Turley, OpenAI’s head of ChatGPT, addressed the competitive landscape in recent posts on LinkedIn and X. He described ChatGPT as the top AI assistant worldwide and said that competition pushes OpenAI to move faster and continue improving ChatGPT. OpenAI’s focus is on making ChatGPT "more capable" while expanding access and making it "more intuitive and personal."
Looking Ahead
OpenAI’s new reasoning model launch will provide the first indication of how the company is executing on Altman’s directive. The delay of advertising and AI agents suggests ChatGPT quality has become the company’s singular near-term priority. For marketers and SEO professionals, the more immediate impact is likely to be on how ChatGPT handles complex queries, research tasks, and follow-up questions once the new model is live.
Conclusion
In conclusion, OpenAI’s "code red" declaration is a response to the growing competition from Google’s Gemini 3 model. The company is focusing its resources on improving ChatGPT, with a new reasoning model expected to launch soon. While OpenAI still has a large lead in assistant usage, Google’s sustained investment in AI infrastructure has produced a model that scores higher than ChatGPT on several high-profile benchmarks. The outcome of this competition will be important to watch, as it will impact the development of AI assistants and their ability to handle complex queries and tasks.