OpenAI CEO Sam Altman has reportedly declared a “code red” across the company, signaling a major shift in priorities. In an internal memo, he urged staff to focus all efforts on improving ChatGPT, the startup’s flagship chatbot. The move comes as rivals, especially Google, rapidly close the gap in the global AI race.
A Strategic Retreat on New Features
To free up resources, OpenAI is delaying several high-profile initiatives. Projects like ads, shopping, health agents, and a personal assistant called Pulse are being pushed back. Altman emphasized that the company must first fix core issues in ChatGPT, such as speed, reliability, and the ability to handle more complex queries before expanding into new areas.
Focusing on Core ChatGPT Improvements
The “code red” directive zeroes in on making ChatGPT faster, more reliable, and more personalized. Altman wants the chatbot to answer more questions accurately and consistently across sessions. Daily calls are now being held with teams responsible for these improvements, and employees are encouraged to temporarily shift to critical development work.
Google’s AI Momentum Puts Pressure on OpenAI
Google’s rapid AI progress is a key reason behind OpenAI’s urgency. After ChatGPT’s launch, Google declared its own “code red” and has since rolled out powerful tools like the Nano Banana image model and Gemini 3. Gemini 3, in particular, has outperformed rivals on many benchmarks, giving Google a strong foothold in the consumer AI market.
A Shifting Balance in the AI Race
For months, OpenAI enjoyed a clear lead in the generative AI space, but that advantage is now narrowing. Google’s massive user base and deep integration of AI into Search, Gmail, and Workspace give it a significant edge. OpenAI’s “code red” shows it can no longer assume dominance and must now fight to maintain relevance.
Internal Reorganization to Speed Up Development
Under the new directive, OpenAI is reorganizing teams to accelerate ChatGPT improvements. Daily stand-up calls are being held with key engineering and product leads. Altman is also encouraging temporary transfers of staff from less critical projects to core chatbot development, reflecting the seriousness of the situation.
What This Means for the Future of AI
OpenAI’s “code red” marks an inflection point in the AI industry. As Google and others like Anthropic and Meta push harder, the race is no longer about who launched first, but who can deliver the most useful, reliable AI experience. The next few months will be crucial in determining which company truly leads the next wave of AI.
