OpenAI’s ’Code Red’ as Google’s Gemini and Anthropic Close Gap on ChatGPT
OpenAI has declared an internal 'code red' as competition from Google's Gemini and Anthropic intensifies. Sam Altman's leaked memo reveals urgent priorities: enhanced personalization, faster response times, and expanded question-handling capabilities. The pressure follows Gemini's recent outperformance on benchmark tests and Anthropic's growing enterprise traction.
Google's AI momentum is undeniable. Gemini's user base surged 44% to 650 million monthly actives after launching its Nano Banana image generator. The model's technical achievements already eclipse ChatGPT in standardized evaluations, sending Google's stock upward. Meanwhile, Anthropic continues carving out a lucrative B2B niche.
OpenAI's billion-dollar data center investments loom large. With CFO Sarah Friar ruling out near-term IPO plans, the company faces mounting pressure to monetize its infrastructure spending. Delays to ancillary projects—including advertising tools and the Pulse personal assistant—highlight redirected resources toward Core product improvements.