OpenAI has issued a “code red” alert, signaling urgent improvements to its AI systems. CEO Sam Altman sent the internal memo to accelerate updates to maintain OpenAI’s competitive edge.
The move comes after Google released Gemini 3, which outperformed OpenAI’s models in several key benchmarks. Gemini’s rapid growth, fueled by tools like the Nano Banana image generator, has increased pressure on OpenAI to retain its user base. Gemini’s users grew from 450 million in July to 650 million in October, while OpenAI serves over 800 million monthly users, most of them on the free tier.
Altman outlined that OpenAI will enhance ChatGPT’s speed, personalization, reliability, and reasoning capabilities. A new ChatGPT reasoning model is expected next week, aiming to outperform Gemini 3. OpenAI also plans upgrades for its image generation tools, although some features like AI agents for shopping and healthcare will be delayed.
The company remains unprofitable and relies on raising funds to expand its data centers. Analysts estimate that OpenAI needs to achieve $200 billion in revenue by 2030 to reach profitability. Despite these challenges, the firm emphasizes continued growth and wider global access for its AI platforms.
Nick Turley, head of ChatGPT at OpenAI, highlighted that the company’s goal is to make ChatGPT more intuitive, capable, and personal. The “code red” status reflects the urgency of responding to increasing competition from Google’s Gemini and Anthropic’s Claude Opus 4.5.
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This alert underscores the intense competition in the AI sector and OpenAI’s efforts to maintain its leadership. The company is committed to rapidly improving its products to meet growing user expectations and secure its position in the fast-evolving artificial intelligence market.
