OpenAI CEO Sam Altman has internally acknowledged a critical situation, calling it a “code red,” as ChatGPT struggles to maintain its lead against rapidly advancing competitor models, particularly Google’s Gemini. This comes after Google released Gemini 3 last month, which has outperformed ChatGPT in several benchmark tests, raising concerns about OpenAI’s dominance in the AI market.
Gemini 3’s Breakthrough Performance
Gemini 3’s capabilities have been widely praised, with the tech giant describing it as ushering in a “new era of intelligence.” The model achieved a record score on Humanity’s Last Exam – a rigorous test designed to measure AI reasoning and problem-solving skills. Beyond raw performance, Gemini 3 has also demonstrated impressive features like its Nano Banana image generator and robust reasoning abilities. Salesforce CEO Marc Benioff, a heavy user of ChatGPT, publicly stated he will not return to ChatGPT after using Gemini 3 for two hours.
OpenAI’s Response
While Altman publicly congratulated Google on the launch of Gemini 3, calling it a “great model” on X, he reportedly warned OpenAI employees that ChatGPT had fallen behind. According to leaked internal memos obtained by The Information and The Wall Street Journal, Altman urged his team to rapidly improve ChatGPT’s quality to catch up. OpenAI has not commented on the leaked memo.
The Broader Implications
The escalating competition between OpenAI and Google highlights the increasingly rapid pace of AI development. OpenAI’s ChatGPT, once the dominant force in the chatbot space, is now facing a direct challenge from Google’s superior model. This competition benefits consumers, as both companies are driven to innovate faster and improve their products. OpenAI’s head of ChatGPT, Nick Turley, acknowledged the shifting landscape, stating that new products launching weekly push the company to accelerate development and raise industry standards.
The AI landscape is evolving quickly, and OpenAI must move aggressively to retain its position. The pressure to improve ChatGPT is not merely about maintaining market share; it’s about staying ahead in a field where technological advancements happen at an unprecedented rate.
