OpenAI CEO Declares ‘Code Red’ to Boost ChatGPT Amid Growing AI Competition

OpenAI CEO Sam Altman has set a “code red” alert to prioritize enhancements to ChatGPT, delaying other projects. The move comes amid rising competition from tech giants like Google in generative AI.

Altman signals urgency for ChatGPT development

San Francisco — OpenAI CEO Sam Altman has initiated a “code red” at the company, urging employees to focus on improving the speed, reliability, and personalization of ChatGPT, the company’s flagship AI chatbot. The Wall Street Journal reported that an internal memo sent Monday instructed staff to prioritize these enhancements over other product developments.

The alert underscores the increasing pressures on OpenAI, which released ChatGPT three years ago to global attention. The generative AI tool fueled a rapid commercial boom, giving the San Francisco-based startup an early lead in a crowded market. However, competitors are closing the gap, with Google launching Gemini 3 last month, the latest iteration of its AI assistant.

OpenAI did not immediately respond to a request for comment. Tech news outlet The Information also confirmed the memo.

User growth and financial pressures

Altman previously reported that ChatGPT now reaches more than 800 million weekly users. Despite its popularity, OpenAI, valued at roughly $500 billion, is not yet profitable. The company has committed over $1 trillion in financial obligations to cloud computing providers and chipmakers that supply the infrastructure for its AI systems.

This financial exposure has fueled concerns among investors, who fear that OpenAI may struggle to meet the expectations of backers such as Oracle and Nvidia. Analysts have increasingly warned about the risk of an AI market bubble as investment and hype continue to grow.

Search and personalization as priorities

Nick Turley, OpenAI vice president and head of ChatGPT, highlighted the platform’s potential in online search. Writing on social media, Turley emphasized the company’s focus on making ChatGPT “even more intuitive and personal,” positioning it to better compete with entrenched search providers.

OpenAI generates revenue through premium subscriptions, though most users rely on the free version of ChatGPT. In October, the company launched Atlas, its own web browser, aiming to compete with Google Chrome as AI becomes an increasingly integrated tool for online queries. Unlike Google, OpenAI has not yet monetized ChatGPT with advertising, which remains a key revenue source for Google’s search business.

Delays to other projects

According to the Wall Street Journal, Altman’s memo indicated that development on advertising tools, AI agents for health and shopping, and a personal assistant called Pulse would be postponed. The decision reflects the company’s strategic pivot to consolidate ChatGPT’s core performance before expanding its product ecosystem.

Industry context and competition

The “code red” alert illustrates the intensifying rivalry in generative AI, as leading tech firms compete to deliver faster, more capable, and personalized assistants. While OpenAI has maintained a first-mover advantage, rivals like Google and Microsoft-backed platforms are increasingly vying for market share, raising stakes for reliability, user engagement, and long-term sustainability.

The move also highlights a broader industry challenge: balancing rapid user growth with financial sustainability. As AI tools gain mainstream adoption, companies must invest heavily in computing power, data management, and research while navigating unproven monetization models. OpenAI’s focus on ChatGPT reflects a strategy to strengthen its flagship product in this competitive and costly environment.