OpenAI CEO Sam Altman (left) and Alphabet/Google CEO Sundar Pichai.Altman: YOSHIKAZU Tsuno—Gamma-Rapho/Getty Images; Pichai: Klaudia Radecka—NurPhoto/Getty Images
OpenAI CEO Sam Altman has officially hit the “Code Red” button—echoing the same alarm that Google CEO Sundar Pichai raised three years ago when ChatGPT first exploded onto the scene. This time, however, the pressure is coming from Google’s powerful new AI model, Gemini 3, which is quickly gaining momentum in the global AI race.
In an internal memo reported by The Information, Altman told OpenAI employees that the company is entering a critical phase. He said OpenAI will now shift more resources toward strengthening ChatGPT and temporarily pause other plans, including its advertising rollout. His message was clear: Competition is heating up, and OpenAI must act fast.
Google’s Big Comeback With Gemini 3
Just two weeks ago, Google rolled out Gemini 3 across its massive ecosystem—including its fastest-ever integration into Google Search. This bold launch stands in stark contrast to Google’s hesitant start back in 2022 after ChatGPT caught the world by storm.
Pichai has openly admitted that Google had a chatbot ready at the time but didn’t feel confident enough to release it. And the first Gemini model in 2023 didn’t help matters much—it faced backlash over inaccurate responses and bizarre outputs, including the viral “eat glue and rocks” incident in Search’s AI Overviews.
But 2025 is a different story. Gemini 3 has delivered strong results in reasoning, math, and coding tests. It’s also rapidly growing, reaching 650 million monthly users in October.
OpenAI Feels the Heat
Altman clearly sees the shift. In a memo last week, he mentioned “temporary economic headwinds” and warned staff to prepare for “rough vibes” as Google regains its footing.
Before ChatGPT launched, Google was widely viewed as the undisputed leader in AI. Its researchers invented the transformer architecture—the foundation of every modern AI model—and created major breakthroughs like BERT, AlphaGo, AlphaZero, and AlphaFold.
But ChatGPT changed everything in 2022, forcing Google into defensive mode. Now, the tables are turning again.
Can OpenAI Keep Its Lead?
OpenAI still has huge advantages. ChatGPT boasts 800 million weekly users, and for many people, “AI” basically means ChatGPT. But maintaining that lead won’t be easy.
OpenAI is pushing to raise an additional $100 billion as it burns cash to stay competitive. The company also needs to keep subscription revenue growing—it expects nearly $10 billion from ChatGPT this year.
On top of that, it has lost several top researchers to emerging rivals, including Thinking Machines and Meta’s Superintelligence Labs.
What’s Next?
Altman told employees that OpenAI will release a new reasoning model next week that reportedly outperforms Gemini 3 in internal tests. Still, he acknowledged there’s a lot of work ahead to enhance the overall ChatGPT experience.
Back in 2022, Google engineers spent their holidays responding to ChatGPT’s rise. This year, it looks like OpenAI teams may be the ones working overtime as the AI rivalry intensifies.
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